Overview

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Master financial derivatives - forwards, futures, options, swaps, and credit derivatives with the pricing models and market intuition needed for CFA Level 1 and real-world trading. This intermediate course covers the complete derivatives curriculum: derivative instruments and market structure, forward and futures pricing, swap valuation, options models including binomial valuation, put-call parity, and advanced option strategies. Every lesson combines theory with numerical practice questions mirroring CFA Level 1 difficulty. Top skills you'll gain: • Pricing forwards, futures, and swaps using cost of carry • Options valuation: intrinsic value, time value, Greeks • Binomial model and put-call parity from first principles • Arbitrage identification and derivative risk management You'll be able to: • Price and value derivative financial instruments confidently • Build option strategies for hedging and speculation • Identify arbitrage opportunities in derivative markets Module Highlights: M1: Derivative instruments, market structure, and arbitrage basics M2: Forward, futures, and swap pricing and valuation M3: Options pricing, Greeks, and binomial valuation models M4: Option strategies, put-call parity, and capstone application Take this course if you're preparing for CFA Level 1 derivatives, trading futures and options, or building a career in risk management and financial markets. Disclaimer: This course is an independent educational resource developed by Board Infinity and is not affiliated with, endorsed by, sponsored by, or officially associated with CFA Institute or any of its subsidiaries or affiliates. This course is not an official preparation material of CFA Institute. All trademarks, service marks, and company names mentioned are the property of their respective owners and are used for identification purposes only.

Syllabus

Derivative Instruments, Features, and Derivative Market

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.

Pricing and Valuation of Forward Contracts and Swaps

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.

Pricing and Valuation of Futures

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.

Option Replication- Put Call Parity

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.