Derivative Instruments: Study Session 17
Study Session Materials
Complete List of CFA Program Readings
Topic Overview
Derivative Investments
Derivatives − financial instruments that offer a return based on the return of some underlying asset − have become increasingly important and fundamental in effectively managing financial risk and creating synthetic exposures to asset classes. As in other security markets, arbitrage and market efficiency play a critical role in establishing prices and maintaining parity.
This study session builds the conceptual framework for understanding
derivative investments (forwards, futures, options, and swaps),
derivative markets, and the use of options in risk management.
View learning outcome statements (LOS) for reading objectives.
Complete List of CFA Program Readings
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"Derivative Markets and Instruments" Ch. 1, Analysis of Derivatives for the CFA® Program, Don Chance (AIMR, 2003) |
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"Forward Markets and Contracts" Ch. 2, pp. 25-37, Analysis of Derivatives for the CFA® Program, Don Chance (AIMR, 2003) |
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"Futures Markets and Contracts" Ch. 3, pp. 81-103, Analysis of Derivatives for the CFA® Program, Don Chance (AIMR, 2003) |
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"Option Markets and Contracts" Ch. 4, pp. 159-194, Analysis of Derivatives for the CFA® Program, Don Chance (AIMR, 2003) |
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"Swap Markets and Contracts" Ch. 5, pp. 269-285, Analysis of Derivatives for the CFA® Program, Don Chance (AIMR, 2003) |
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"Risk Management Applications of Option
Strategies" Ch. 7, pp. 411-429, Analysis of Derivatives for the CFA® Program, Don Chance (AIMR, 2003) |
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