Back to Chartered Financial Analyst Level 2

Derivatives

Financial instruments whose value is derived from an underlying asset.

Derivatives are financial instruments whose value is derived from an underlying asset, such as stocks, bonds, commodities, or currencies. Examples include options, futures, forwards, and swaps. Derivatives are used for hedging, speculation, and risk management purposes. Analysts must understand the mechanics and risks associated with derivatives to effectively use them in investment strategies.

Concepts covered: Valuation of Contingent Claims, Pricing and Valuation of Forward Commitments

Time: 5 minutes   Questions: 5

Test mode:
Start practice test
Go Premium

Chartered Financial Analyst Level 2 Preparation Package (2024)

  • 1221 Superior-grade Chartered Financial Analyst Level 2 practice questions.
  • Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
  • Unlock Effortless CFA Level 2 preparation: 5 full exams.
  • 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
  • Bonus: If you upgrade now you get upgraded access to all courses
  • Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!
More Derivatives questions
129 questions (total)
Start 100 question test