Derivatives - CFA Level 1

Modules

#	Module	LOS
01	Derivative Instrument and Market Features	1.a-1.b
02	Forward Commitment and Contingent Claim Features and Instruments	2.a-2.c
03	Derivative Benefits, Risks, and Issuer and Investor Uses	3.a-3.b
04	Arbitrage, Replication, and Cost of Carry in Pricing Derivatives	4.a-4.b
05	Pricing and Valuation of Forward Contracts	5.a-5.b
06	Pricing and Valuation of Futures Contracts	6.a-6.b
07	Pricing and Valuation of Interest Rates and Other Swaps	7.a-7.b
08	Pricing and Valuation of Options	8.a-8.c
09	Option Replication Using Put-Call Parity	9.a-9.b
10	Valuing a Derivative Using a One-Period Binomial Model	10.a-10.b

Derivative Instruments — definition, spot vs derivative markets, underlying types, OTC vs ETD, clearinghouse
Forward Commitments — forwards (pricing, payoff, settlement), futures (MTM, margin), swaps (interest rate swap)
Contingent Claims — options (call/put, European/American, moneyness), credit derivatives (CDS, CLN)
Derivative Risks and Benefits — risk transfer, price discovery, leverage, systemic risk, hedge accounting
Arbitrage and Replication — law of one price, no-arbitrage pricing, replication, cost of carry
Option Valuation — price bounds, factors affecting value, binomial model
Put-Call Parity — protective put, fiduciary call, parity formula, synthetics, forward parity