This course provides a comprehensive and structured introduction to Derivatives in CFA Level I, designed to simplify one of the most challenging areas of the curriculum. It focuses on building strong conceptual understanding alongside practical exam application.

The course starts with an introduction to derivative markets and instruments, explaining why derivatives exist, how they are used for hedging and speculation, and how they differ from underlying assets. Learners then move into the basics of derivative pricing and valuation, gaining clarity on key pricing concepts and relationships essential for exam success.

Special attention is given to put–call parity, helping candidates understand the fundamental arbitrage relationship between options and underlying assets. The course also covers forward contracts, including their structure, payoff profiles, and valuation logic.

In addition, learners explore option markets and contracts, understanding option terminology, rights and obligations, and basic payoff structures. Each topic is explained step by step to help candidates avoid common exam pitfalls.

This course is ideal for CFA Level I candidates who want a clear, exam-focused understanding of derivatives, improving confidence, calculation accuracy, and problem-solving skills before the exam.