TAILIEUCHUNG - Hướng dẫn ôn thi CFA Level 1 2010 Phần 17

Tài liệu hướng dẫn ôn thi CFA Level 1 phần Derivatives | The following is a review of the Derivative Investments principles designed to address the learning outcome statements set forth by CFA Institute . This topic is also covered in Derivative Markets and INSTRUMENTS Study Session 17 EXAM FOCUS This topic review contains introductory material for the upcoming reviews of specific types of derivatives. Derivatives-specific definitions and terminology are presented along with information about derivatives markets. Upon completion of this review candidates should be familiar with the basic concepts that underlie derivatives and the general arbitrage framework. There is little contained in this review that will not be elaborated upon in the five reviews that follow. LOS Define a derivative and differentiate between exchange-traded and over-the-counter derivatives. A derivative is a security that derives its value from the value or return of another asset or security. A physical exchange exists for many options contracts and futures contracts. Exchange-traded derivatives are standardized and backed by a clearinghouse. Forwards and swaps are custom instruments and are traded created by dealers in a market with no central location. A dealer market with no central location is referred to as an over-the-counter market. They are largely unregulated markets and each contract is with a counterparty which may expose the owner of a derivative to default risk when the counterparty does not honor their commitment . Some options trade in the over-the-counter market notably bond options. LOS Define a forward commitment and a contingent claim. A forward commitment is a legally binding promise to perform some action in the future. Forward commitments include forward contracts futures contracts and swaps. Forward contracts and futures contracts can be written on equities indexes bonds physical assets or interest rates. A contingent claim is a claim to a payoff that depends on a particular event. Options are contingent claims that

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