Derivatives

CFA Level 1 · 5 questions

Key Takeaways

Covers forwards, futures, options, and swaps conceptually — payoff diagrams and pricing intuition, not full pricing models.
One of the lighter-weighted topics; many candidates study this late in their plan.
Typically weighted 5–8% of the Level 1 exam.

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Question 1Easy

Which of the following best describes a forward contract?

A.An agreement to buy or sell an asset at a specified future date for a price agreed upon todayB.A standardized contract traded on an exchange with daily settlementC.The right, but not the obligation, to buy or sell an asset at a specified priceD.A contract that gives the seller the choice to deliver one of several assets

Select an answer and check it