CFA® L1 — Derivatives
Forwards, futures, options, swaps — the mechanics, the pricing intuition, and the hedging applications.
Quick info
- Layer
- Professional Certifications
- Track
- CFA® Level 1
- Estimated hours
- 25 hrs
- Chapters
- 6
- Exam body
- CFA Institute
- Cost on Trustner
- Free
The full chapter-by-chapter syllabus is published below so you know exactly what you're committing to. Individual lesson pages are being authored progressively over the coming weeks. Bookmark this page or browse all courses.
About this course
Forwards, futures, options, swaps — the mechanics, the pricing intuition, and the hedging applications.
Who this is for
- CFA L1 candidates.
- Risk-management and trading professionals.
What you'll learn
- How forwards, futures, options, and swaps differ
- Pricing intuition — cost-of-carry, replication, arbitrage
- Option payoffs and basic strategies
- Hedging and speculation applications
Full syllabus — 6 chapters
- 1Reading 1
Derivatives markets and instruments
- OTC vs exchange-traded
- Standardisation and counterparty risk
- 2Reading 2
Forward and futures pricing
- Cost-of-carry model
- Mark-to-market mechanics
- 3Reading 3
Option markets and contracts
- Payoffs at expiry
- Intrinsic and time value
- 4Reading 4
Option pricing intuition
- Put-call parity
- Binomial intuition and Black-Scholes basics
- 5Reading 5
Swap basics
- Interest-rate, currency, equity swaps
- Pricing as a series of forwards
- 6Reading 6
Risk management with derivatives
- Hedging applications
- Strategic vs tactical hedges
About the exam
- Provider
- CFA Institute
Note: ~5-8% of CFA L1 weight.
The exam is administered by CFA Institute. Trustner Academy is not affiliated with CFA Institute; we provide independent preparatory educational material. See our disclaimer.
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