Apply practical derivatives knowledge to truly test your understandingDerivatives Workbook offers practical instruction for students and professionals seeking additional guidance on working with derivatives instruments. Created by CFA Institute as a companion to the comprehensive Derivatives text, this book helps you practice using what you've learned through problems that mimic real-world scenarios. Working with different derivatives instruments helps you gauge how well you understand the instruments' characteristics, both shared and unique; this intimate knowledge is essential to effective…mehr
Apply practical derivatives knowledge to truly test your understandingDerivatives Workbook offers practical instruction for students and professionals seeking additional guidance on working with derivatives instruments. Created by CFA Institute as a companion to the comprehensive Derivatives text, this book helps you practice using what you've learned through problems that mimic real-world scenarios. Working with different derivatives instruments helps you gauge how well you understand the instruments' characteristics, both shared and unique; this intimate knowledge is essential to effective portfolio management, and this book provides an expertly-designed, low-stakes environment ideal for self-assessment.Derivatives--financial instruments that derive their value from the value of some underlying asset--have become increasingly important for effective risk management, and fundamental for creating synthetic exposures to asset classes. Whether you're a student aspiring to a career in finance, or a professional seeking a stronger skill set, this workbook is an invaluable tool for simulating the use of derivatives in everyday practice._ Work more effectively with different types of derivative instruments_ Master the valuation of forward, future, options, and swap contracts_ Utilize options for risk management and portfolio optimization_ Explore the practical aspects of working within the derivatives marketsAs in other security markets, arbitrage and market efficiency play a critical role in derivative pricing. The experts at CFA Institute recognize the need for realistic, practical derivatives training that translates well into real-world practice; this workbook fills the gap with a wealth of practice problems that have value to both aspiring and practicing investment professionals. Derivatives Workbook provides authoritative training and comprehensive practical instruction on derivative instruments, their markets, and valuation.
WENDY L. PIRIE, PHD, CFA, is Director, Curriculum Projects, in the Education Division at CFA Institute. She holds a PhD in accounting and finance from Queen's University at Kingston, Ontario, and MBAs from the Universities of Toronto and Calgary. She is a member of CFA Institute, New York Society of Security Analysts, and CFA Society Chicago.
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PART ILearning Objectives, Summary Overview, and ProblemsCHAPTER 1Derivative Markets and Instruments 3Learning Outcomes 3Summary Overview 3Problems 5CHAPTER 2Basics of Derivatives Pricing and Valuation 7Learning Outcomes 7Summary Overview 8Problems 9CHAPTER 3Pricing and Valuation of Forward Commitments 13Learning Outcomes 13Summary Overview 13Problems 14CHAPTER 4Valuation of Contingent Claims 21Learning Outcomes 21Summary Overview 22Problems 24CHAPTER 5Derivatives Strategies 31Learning Outcomes 31Summary Overview 31Problems 32CHAPTER 6Risk Management 35Learning Outcomes 35Summary Overview 36Problems 38CHAPTER 7Risk Management Applications of Forward and Futures Strategies 47Learning Outcomes 47Summary Overview 47Problems 49CHAPTER 8Risk Management Applications of Option Strategies 53Learning Outcomes 53Summary Overview 53Problems 56CHAPTER 9Risk Management Applications of Swap Strategies 61Learning Outcomes 61Summary Overview 61Problems 64PART IISolutionsCHAPTER 1Derivative Markets and Instruments 75Solutions 75CHAPTER 2Basics of Derivatives Pricing and Valuation 79Solutions 79CHAPTER 3Pricing and Valuation of Forward Commitments 83Solutions 83CHAPTER 4Valuation of Contingent Claims 89Solutions 89CHAPTER 5Derivatives Strategies 93Solutions 93CHAPTER 6Risk Management 95Solutions 95CHAPTER 7Risk Management Applications of Forward and Futures Strategies 101Solutions 101CHAPTER 8Risk Management Applications of Option Strategies 105Solutions 105CHAPTER 9Risk Management Applications of Swap Strategies 111Solutions 111