CFA Level 1 Full Course: Pricing and Valuation of Futures Contracts

Welcome to the CFA Level 1 full course. This free, comprehensive playlist is designed to provide in-depth teaching on the CFA Level 1 2024 curriculum. Whether you're seeking detailed CFA video lessons or tutorials on CFA basics, this series has you covered. Each video in this CFA Level 1 full course offers clear explanations and thorough review to ensure you grasp all the key concepts. Perfect for candidates preparing for the 2024 exam, these CFA lectures will help you master the material and succeed in your studies. Dive into the CFA level 1 2024 curriculum content and elevate your understanding with the expert guidance of Martin Stoynov, a CFA teacher since 2007.
This reading focuses on pricing and valuation of futures contracts.
🔍 What You Will Learn:
Futures pricing
Futures vs forwards
Interest rate futures
Futures prices and correlation
Convexity of forward contracts
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[@mstoynov]

Support the channel and get question-based revision at www.stoynov.co.uk/revision

[@prajjwalsingh1695]

Thanks a lot for covering everything in great detail! Your lessons are pretty valuable :)

[@mstoynov]

My pleasure!

[@anushkaanand2523]

Thanks for the lesson Martin, able to connect the dots with your video lectures!!

[@mstoynov]

Great to hear!

[@cs2troll]

22:10 When MRR increases the future price should decrease right by the relationship future price = 100-MRR

[@mstoynov]

Correct, but what we are comparing here is the profit on a long forward with respect to that of a short futures.

[@cs2troll]

@@mstoynov I understand that increase in interest rate will benefit a short futures but how can future prices and interest rates have positive correlation as you have said in the video?

[@mstoynov]

I agree that this is unusual. However, the point the book is making is that *if we assume* positive correlation then this is what happens.

[@martijntjeeh]

Tough subject!

[@mstoynov]

Indeed! I always recommend to get going with derivatives earlier than later as they grow to become a formidable enemy by level 2.