CFA Level I Derivatives - Derivative Pricing and Replication

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  • Опубліковано 11 вер 2024

КОМЕНТАРІ • 21

  • @KAKA-ep3fg
    @KAKA-ep3fg 2 роки тому +7

    It's so easy to understand. it helps me a lot. Thank you for your great explanation.

  • @mazharcoban
    @mazharcoban 3 роки тому +5

    you have to pay a premium to short a forward contract therefore there must be cash outflow at t=0.

    • @mekhathomas4050
      @mekhathomas4050 5 місяців тому +1

      Only put and call options need premiums, not forwards.

  • @shadrinan90
    @shadrinan90 2 роки тому +1

    Interesting, short and clear!

  • @gozy2932
    @gozy2932 Рік тому +2

    Wow, too good

  • @amznprime5145
    @amznprime5145 Рік тому +6

    7:01 Shouldn't it be the investor agrees to buy, not sell, the stock at $103 one year later? 😂

    • @rafarevam
      @rafarevam Рік тому +1

      Thank God. I thought I was the only one.

    • @rafarevam
      @rafarevam Рік тому

      Also. Shouldn't he be shorting the forward and buying the underlying
      It should be a short forward position combined with a buying the underlying
      Like he himself said in the beginning of the video

  • @bushrajarba
    @bushrajarba 4 місяці тому

    simple and clear. thank you !!!!

  • @youtubeuser2195
    @youtubeuser2195 3 місяці тому +1

    Nice graphics

  • @rishabmitra1081
    @rishabmitra1081 2 роки тому

    best explanation ....

  • @x6011
    @x6011 2 роки тому

    short forward at t=0, just meaning the positin, not meaning really 'selling forward', correct? the selling forward only happens at t=T? thanks!

    • @besszhang2864
      @besszhang2864 2 роки тому

      Yup! Even though this reply is a little bit late, I hope it can still be useful: for forwards/futures, you just entre the contract with no upfront payment, and signing the contract means that you have the OBLIGATION of selling/buying the underlying asset at maturity. However, for options, you do have to pay for the price of it, and it is not a contract, you have the RIGHT BUT NOT OBLIGATION to buy/sell the underlying asset at maturity.

  • @geinezhang7030
    @geinezhang7030 4 роки тому +1

    really good content

  • @ankitamarkan8457
    @ankitamarkan8457 3 роки тому

    Very helpful!!

  • @cbah4656
    @cbah4656 2 роки тому +1

    i wish i can give a hundred likes👌

  • @Jupiter1423
    @Jupiter1423 2 роки тому

    What always got me about this is that its all based on the risk free rate. But who can actually borrow at the risk free rate?

    • @mustafael-dardeery4804
      @mustafael-dardeery4804 Рік тому

      well, If you bought t bills you pretty much borrowed at the risk free rate

    • @Jupiter1423
      @Jupiter1423 Рік тому +2

      @@mustafael-dardeery4804 you lend when u buy t bills...not borrow

  • @sudhanshupandey2207
    @sudhanshupandey2207 3 роки тому

    Nicely explained