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Prepare for CFA Level 1: Derivatives and Risk Management

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Board Infinity

Prepare for CFA Level 1: Derivatives and Risk Management

Board Infinity

Instructor: Board Infinity

Included with Coursera Plus

Gain insight into a topic and learn the fundamentals.
Beginner level

Recommended experience

9 hours to complete
Flexible schedule
Learn at your own pace
Gain insight into a topic and learn the fundamentals.
Beginner level

Recommended experience

9 hours to complete
Flexible schedule
Learn at your own pace

What you'll learn

  • Apply pricing and valuation models for forwards, futures, and swaps using cost of carry and arbitrage frameworks

  • Analyze option value, moneyness, time value, and Greeks to evaluate derivative financial instruments in live markets

  • Build binomial valuation models and put-call parity frameworks to price European options from first principles

  • Design real-world derivative strategies for hedging, speculation, and arbitrage using futures, options, and swaps

Details to know

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Assessments

13 assignments

Taught in English

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This course is part of the Prepare for CFA Level 1 Exam: Master Core Finance Concepts Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
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There are 4 modules in this course

This module introduces the fundamentals of derivatives, including their definitions, underlying assets, and market structures. Learners explore the key categories of derivatives such as forwards, futures, swaps, options, and credit derivatives while examining how these instruments function in financial markets. The module also analyzes derivative benefits, risks, and the uses of derivatives by both issuers and investors.

What's included

5 assignments

This module focuses on the pricing and valuation mechanisms used for forward contracts, futures contracts, and interest rate swaps. Learners examine pricing frameworks, mark-to-market valuation processes, and the differences between forwards and futures contracts. The module also explores the impact of interest rates, market structure, and central clearing on derivative pricing.

What's included

3 assignments

This module introduces option valuation principles and examines the factors influencing option prices. Learners explore concepts such as moneyness, intrinsic value, time value, and arbitrage relationships. The module also introduces the binomial model and risk-neutral valuation techniques used to price European options.

What's included

3 assignments

This module examines the relationship between option prices and underlying assets through put–call parity and replication strategies. Learners explore how parity relationships help identify arbitrage opportunities and construct synthetic positions. The module also analyzes applications of put–call parity in option strategies and firm valuation contexts.

What's included

2 assignments

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Instructor

Board Infinity
Board Infinity
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