Derivatives

CFA Level II Derivatives
#1

Hey everyone!

I did start derivatives yesterday and Oh boy, it’s killing me. its my last topic area but I did find it very hard to grasp the concepts. quants and derivatives are my weakness. I am good at all other topic areas.

please let me know what to do.

#2

Hi, be familiar with the difference between price and value, that’s a basic must. Then there is a lot related on how you can calculate the value of a derivative (equity, swap, fixed income, currency) on a point in time. IFT videos are good explanation on this topic IMO

Wish you the best

#3

Valuing derivatives at a point in time is, frankly, pretty simple:

PV(What you will receive) − PV(what you will pay)

This works for forwards, futures, swaps, FRAs, and options, though for options they already do the calculation for you and call it the premium.

#4

Keep practicing. What helped me with derivatives is the idea that these problems are, in the end, all about calculations. There are no tricks. If you practice enough, you should be able to get 100% on this section. That said, it wasn’t easy to learn.

#5

This is straight forward explanation - just need to keep practicing.

TY

#6

The derivatives reading should just be this copy pasted over 100 pages.

#7

agreeeeeeeeeeeeeee

#8

lol - if only they could make it that simple.

#9

+1

#10

Derivatives was my favorite part of L2. I’d appreciate it if you guys stop shitting on my favorite topic.

#11

Tell your body to chill and be easier, so that people start to like it as you do.

#12

I liked derivatives as well. I for some reason find them fascinating and a pretty cool topic. But yeah, they can be a pain in the ass as well.