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Learn the fundamental concepts of pricing and valuation for futures contracts in this 22-minute educational video designed for 2025 Level I CFA® exam preparation. Master the critical differences between the value and price of forward and futures contracts while exploring the underlying reasons why forward and futures prices diverge. Examine the theoretical frameworks and practical applications that drive futures contract pricing, including the impact of interest rates, storage costs, and convenience yields. Develop a comprehensive understanding of the valuation methodologies used in derivatives markets and gain the analytical skills necessary to compare and contrast forward and futures pricing mechanisms. Build proficiency in applying these concepts to real-world scenarios and strengthen your foundation in derivatives pricing theory essential for the CFA® Level I examination.
