CFA Level 1 Derivatives One Shot - Latest Revisionary Lecture | CA Vikas Vohra

CFA Level 1 Derivatives One Shot – Latest Revisionary Lecture by CA Vikas Vohra covers the complete Derivatives syllabus for the CFA Level I 2026 Exam with concept-based explanations, key numericals, and CFA Institute-style practice questions. Derivatives is one of the most important readings in the CFA Level I curriculum, carrying approximately 5–8% exam weightage. A strong understanding of this subject can significantly improve your overall score. ───────────────────────────── ⏱️ TIMESTAMPS ───────────────────────────── LM 1 – Derivative Instrument and Derivative Market Features (00:00 - 25:00) 00:00 - 08:20 → What is a Derivative? Underlying, price derivation 08:20 - 09:20 → 5 Types of Derivatives: Futures, Forwards, Options, Swaps, Credit Derivatives 09:20 - 12:19 → Speculators vs Hedgers explained 12:19 - 14:53 → Exchange vs OTC Markets, Counterparty Risk 14:53 - 16:44 → Replicating vs Transformed Returns 16:44 - 22:17 → Key Features: Contract Size, Settlement Date, Price vs Value 22:31 - 24:54 → MCQ Practice – LM 1 LM 2 – Forward Commitment and Contingent Claim Features and Instruments (25:00 - 01:44:51) 25:00 - 32:00 → Credit Derivatives (CDS) – Insurance against default 32:00 - 37:46 → Futures & Forwards – Buying on margin, the "udhaari market" 37:46 - 01:05:56 → Margin Mechanics: Initial Margin, Maintenance Margin, Mark-to-Market, Margin Call 01:05:56 - 01:09:53 → Payoff Graphs: Linear (Forward Commitment) vs Non-Linear (Contingent Claim) 01:09:53 - 01:16:39 → Swaps – Fixed Payer, Floating Receiver logic 01:16:39 - 01:44:51 → Options: Calls & Puts – Rights vs Obligations, Premium, Payoff Graphs 01:44:51 - 01:54:48 → MCQ Practice – LM 2 LM 4 – Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives (01:55:00 - 02:41:55) 01:55:00 - 02:08:04 → No-Arbitrage Principle & Why We Use Risk-Free Rate 02:08:28 - 02:13:26 → Cash & Carry Arbitrage (Futures overpriced) 02:13:26 - 02:18:17 → Reverse Cash & Carry (Futures underpriced) 02:18:17 - 02:24:27 → Contango & Backwardation with Real NSE Data 02:24:27 - 02:32:46 → Cost of Carry Model: PV of Costs vs PV of Benefits 02:32:46 - 02:41:55 → Index Futures Pricing – Continuous Compounding Formula 02:41:55 - 02:47:33 → MCQ Practice – LM 4 LM 5 – Forward Rate Agreements (02:48:00 - 03:05:00) 02:48:00 - 02:49:16 → What is an FRA? Borrowing in the future at a fixed rate 02:49:16 - 02:51:04 → Naming Conventions (1x4, 2x9), 30/360 Day Convention 02:51:04 - 02:58:17 → Implied Forward Rate Calculation using Spot Rates 02:58:17 - 03:05:00 → MCQ Practice – LM 5 LM 6 – Pricing & Valuation of Futures Contracts (03:05:26 - 03:15:00) 03:05:26 - 03:09:00 → Price vs Value – Price is Fixed, Value Fluctuates 03:09:00 - 03:12:27 → Value Before Expiry Formula 03:12:27 - 03:15:00 → MCQ Practice – LM 6 LM 7 – Interest Rate Swaps (03:15:00 - 03:45:00) 03:15:00 - 03:25:42 → FRA to Swap Extension – Swap as a Series of FRAs 03:25:42 - 03:35:00 → Fixed Payer & Floating Receiver Logic 03:35:00 - 03:42:00 → Swap Pricing with MMR (Simple Interest, 30/360) 03:42:00 - 03:45:00 → MCQ Practice – LM 7 LM 8 – Options: Payoff, Moneyness & Premium Factors (01:19:50 - 04:43:51) 03:47:57 - 04:05:03 → Call Buyer Payoff – Breakeven (X+P), Max Loss, Max Gain 04:05:03 - 04:19:20 → 7 Factors Affecting Option Premium (Spot, EP, Cost, Benefit, RF, Time, Volatility) 04:19:20 - 04:29:00 → Intrinsic Value vs Time Value – Real Zerodha Option Chain Demo 04:29:00 - 04:37:10 → Put Buyer Payoff – Breakeven (X−P), Probability vs Magnitude 04:37:10 - 04:43:51 → Lower Bound & Upper Bound for Calls and Puts LM 9 – Put-Call Parity (03:50:00 - 03:58:00) 03:50:00 - 03:51:00 → Protective Put = Fiduciary Call – The Equation 03:51:00 - 03:54:00 → Numerical: Finding Call Premium using Put-Call Parity 03:54:00 - 03:56:00 → Put-Call Forward Parity 03:56:00 - 03:58:00 → Payoff Proof with Real Examples LM 10 – Binomial Model (03:58:00 - 04:08:00) 03:58:00 - 04:00:00 → One-Period Binomial Tree – Up Tick & Down Tick 04:00:00 - 04:05:00 → Risk-Neutral Probability Formula 04:05:00 - 04:08:00 → Call & Put Premium Calculation LM 3 – Derivatives: Benefits, Risks & Issuer/Investor Uses (04:08:00 - End) 04:08:00 - 04:15:00 → American vs European Options – When Early Exercise Matters 04:15:00 - 04:35:00 → Cash Flow Hedge, Fair Value Hedge, Net Investment Hedge 04:35:00 - 04:50:00 → Basis Risk, Liquidity Risk, Systemic Risk 04:50:00 - End → MCQ Practice & Final Wrap-Up If you found this lecture helpful, don't forget to Like 👍, Share 📤, and Subscribe 🔔 for more CFA Level I revision lectures, exam strategies, mock discussions, and finance content by CA Vikas Vohra. 📩 Drop your questions in the comments - I read every one. #cfalevel1 #derivatives #cfaexam #cfa2026 #optionstrading #PutCallParity #BinomialModel #CAVikasVohra #CFARevision #DerivativesOneShot #cfaprep #cfaindia #vikasvohracfa #LatestRevisionaryLecture #CFARevision #oneshotrevision #cfaderivatives