Derivative features (for the CFA Level 1 exam)

Derivative features (for the CFA Level 1 exam) explores the basic parameters of derivative instruments: the underlying, contract size, settlement date, long and short counterparties. We discuss alternative settlement methods - physical delivery and cash settlement. We also make the distinction between firm obligations and continent claims as well as stand-alone and embedded derivatives. The video concludes with a discussion of derivative instrument applications. This video covers concepts featured in lesson 2, Learning Module 1 of the Derivatives section of the CFA Level 1 Curriculum