CFA Level I Derivatives - Derivative Pricing and Replication

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Күн бұрын

This is an excerpt from our comprehensive animation library for CFA Level I candidates. For more materials to help you ace the CFA Level I Exam, head on down to prepnuggets.com.

Пікірлер: 21

@KAKA-ep3fg 2 жыл бұрын

It's so easy to understand. it helps me a lot. Thank you for your great explanation.

@shadrinan90 2 жыл бұрын

Interesting, short and clear!

@youtubeuser2195 Ай бұрын

Nice graphics

@ankitamarkan8457 3 жыл бұрын

Very helpful!!

@geinezhang7030 4 жыл бұрын

really good content

@gozy2932 10 ай бұрын

Wow, too good

@rishabmitra1081 Жыл бұрын

best explanation ....

@bushrajarba 2 ай бұрын

simple and clear. thank you !!!!

@PrepNuggets 4 күн бұрын

You're welcome!

@mazharcoban 3 жыл бұрын

you have to pay a premium to short a forward contract therefore there must be cash outflow at t=0.

@mekhathomas4050 3 ай бұрын

Only put and call options need premiums, not forwards.

@x6011 2 жыл бұрын

short forward at t=0, just meaning the positin, not meaning really 'selling forward', correct? the selling forward only happens at t=T? thanks!

@besszhang2864 2 жыл бұрын

Yup! Even though this reply is a little bit late, I hope it can still be useful: for forwards/futures, you just entre the contract with no upfront payment, and signing the contract means that you have the OBLIGATION of selling/buying the underlying asset at maturity. However, for options, you do have to pay for the price of it, and it is not a contract, you have the RIGHT BUT NOT OBLIGATION to buy/sell the underlying asset at maturity.

@sudhanshupandey2207 3 жыл бұрын

Nicely explained

@amznprime5145 Жыл бұрын

7:01 Shouldn't it be the investor agrees to buy, not sell, the stock at $103 one year later? 😂

@rafarevam Жыл бұрын

Thank God. I thought I was the only one.

@rafarevam Жыл бұрын

Also. Shouldn't he be shorting the forward and buying the underlying It should be a short forward position combined with a buying the underlying Like he himself said in the beginning of the video