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Basics of Derivative Pricing and Valuation (2023 Level I CFA® Exam - Derivative - Module 2)

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Topic 7 - Derivatives
Module 2 - Basics of Derivative Pricing and Valuation
0:00 Introduction and Learning Outcome Statements
6:38 LOS: Explain how the concepts of arbitrage, replication, and risk neutrality are used in pricing derivatives.
14:29 LOS: Distinguish between value and price of forward and futures contracts.
LOS: Calculate a forward price of an asset with zero, positive, or negative cost of carry.
16:36 LOS: Explain how the value and price of a forward contract are determined at expiration, during the life of the contract, and at initiation.
21:50 LOS: Describe monetary and nonmonetary benefits and costs associated with holding the underlying asset and explain how they affect the value and price of a forward contract.
28:51 LOS: Define a forward rate agreement and describe its uses.
30:55 LOS: Explain why forward and futures prices differ.
33:56 LOS: Explain how swap contracts are similar to but different from a series of forward contracts.
35:15 LOS: Distinguish between the value and price of swaps.
39:00 LOS: Explain the exercise value, time value, and moneyness of an option.
47:25 LOS: Identify the factors that determine the value of an option and explain how each factor affects the value of an option.
48:41 LOS: Explain put-call parity for European options.
56:14 LOS: Explain put-call-forward parity for European options.
57:24 LOS: Explain how the value of an option is determined using a one-period binomial model.
1:06:42 LOS: Explain under which circumstances the values of European and American options differ.

Пікірлер: 15

  • @roxannemingay2892
    @roxannemingay2892 Жыл бұрын

    These lessons have a calming effect on a person. I've been using Qbank to "draw the picture"; short youtube explanations to "shade the picture" and Professor James to "colour it in" - Your explanations are so enlightening! So grateful Professor, thank you.

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    @analystprep

    Жыл бұрын

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  • @kashfiakamal7504
    @kashfiakamal75042 жыл бұрын

    Your classes have always been very helpful

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    @analystprep

    2 жыл бұрын

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  • @ankurmalhotra9942
    @ankurmalhotra9942 Жыл бұрын

    Beautifully abstracted, focussed and time limiting.

  • @analystprep

    @analystprep

    Жыл бұрын

    Glad it was helpful! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

  • @ahsank.
    @ahsank. Жыл бұрын

    Professor James' lessons are therapy itself

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    @analystprep

    Жыл бұрын

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  • @akhmadazhari5582
    @akhmadazhari5582 Жыл бұрын

    Professor James just simplify 7 chapters of Kaplan Schweser's moduls of Derivative in 1 hour.

  • @analystprep

    @analystprep

    Жыл бұрын

    Glad you enjoyed it! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

  • @OurNewestMember
    @OurNewestMember Жыл бұрын

    47:27 this should be considered foundational knowledge for retail options participants

  • @antoncherepov5711
    @antoncherepov5711 Жыл бұрын

    Thank you so much for these videos, yet I'd like to comment that multiple important points from LOS's are skipped in these videos. Therefore we cannot rely solely on videos...

  • @OurNewestMember
    @OurNewestMember Жыл бұрын

    In practice, the forward/swap prices should be both the discounted present value (or difference thereof between multiple legs) _plus or minus expectations for change_ , right?

  • @brianclark4639
    @brianclark4639 Жыл бұрын

    Did the price of the putter go up to $1000 at some point?

  • @user-si5bd8xh9b
    @user-si5bd8xh9b Жыл бұрын

    Where are the 50 questions posted

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