Derivatives are just a Time Value of Money Problem

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  • เผยแพร่เมื่อ 4 พ.ย. 2024
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ความคิดเห็น • 38

  • @ifejesuolusoji9709
    @ifejesuolusoji9709 3 ปีที่แล้ว +16

    Can't express how grateful I am for this video

  • @KinjalRajbhar_07
    @KinjalRajbhar_07 5 ปีที่แล้ว +6

    Done with valuation and pricing and accidentally ending it up by seeing this video! Thanks is the word :)

  • @kiralight4212
    @kiralight4212 5 ปีที่แล้ว +3

    Thank you so much! The Level 2 curriculum on derivatives is simply way too complex to understand, but your video here helps me understand the concept much better. Good work Mr.Meldrum.

  • @MrLevent79
    @MrLevent79 4 ปีที่แล้ว +2

    This is super helpful. This is why I love studying for CFA with you. Gotta get this L2 done in Dec!

  • @willyastop
    @willyastop 5 ปีที่แล้ว +1

    Excellent video. Simplifies them from the curriculum teachings which are deplorable.

  • @johncena3216
    @johncena3216 2 ปีที่แล้ว

    Hi Mark, 1st of all thanks for the super helpful clarification on the topic of Derivatives. I just have one question hopefully somepne can address: Is the Accrued Interest (at both present and future) subjected to the conversion factor? In method 2 of the 3 methods of calculation which arrive at the same answer, the quoted futures price is multiplied with CF before adding AI and discounting back. However in method 3, the whole bond price AND accrued interest is sumed and future valued before the whole is multipled with CF.

  • @AK-cq5bf
    @AK-cq5bf 5 ปีที่แล้ว +3

    Dr. Mark for prime minister!

  • @1101harsha
    @1101harsha 5 ปีที่แล้ว +1

    I am much confident about tackling derivatives now!

  • @ludovickernest1000
    @ludovickernest1000 5 ปีที่แล้ว

    Much thanks to Mark Meldrum videos... your videos are excellent for self studies.....

  • @lukemunkombwe9203
    @lukemunkombwe9203 5 ปีที่แล้ว +1

    Thank youuuuuuu! I tried to read the Derivative book and I just felt soooo stupid! Imagine being awake at 2am with no idea and understanding of what you studying! I

  • @iceflyger8110
    @iceflyger8110 3 ปีที่แล้ว +1

    Eye-opening video

  • @Cyaa78
    @Cyaa78 หลายเดือนก่อน

    For method 2, why do we add the $0.20 accrued interest? It is subtracted in methods 1 and 3

    • @Financeforyou118
      @Financeforyou118 หลายเดือนก่อน

      The AI in first method is deducted from FO
      We reach to QFO by deducting the AI and dividing FO* by CF
      So to go to FO* from QFO we will do the exact opposite right?
      FO* is simply FO before accounting for AI at expiration [invented it just to make things clearer]

    • @Financeforyou118
      @Financeforyou118 หลายเดือนก่อน

      So even if you dedecuted FI[pv] from FO(pv) [112.08-0.19985=111.880]
      And compared it with QFO [112.41578]
      You will get the same arb value:
      112.41578-111.880
      = 0.5356

  • @jirensama1622
    @jirensama1622 3 ปีที่แล้ว +1

    This video is going to make me subscribe u for level 2

  • @badar7583
    @badar7583 5 ปีที่แล้ว +1

    thank you sir, it is quite a relief

  • @garyobrien8387
    @garyobrien8387 5 ปีที่แล้ว +1

    legend Mark....thank you

  • @intimatecorner1218
    @intimatecorner1218 5 ปีที่แล้ว

    Hi DR Mark are you going to be doing FRM videos anytime soon

    • @MarkMeldrum
      @MarkMeldrum  5 ปีที่แล้ว +2

      I have decided to stay with just CFA for now.

  • @piyushbothra8961
    @piyushbothra8961 5 ปีที่แล้ว +1

    Isn't that similar to the first chapter of level 2 derivatives?

    • @MarkMeldrum
      @MarkMeldrum  5 ปีที่แล้ว

      Yes. It’s the first question from R39. That is the point I am making - they all are TVM problems.

    • @piyushbothra8961
      @piyushbothra8961 5 ปีที่แล้ว

      @@MarkMeldrum Sir thanks for the reply. Could you upload a single question for each of the subject of level 2 which is not there in your playlist? Thanks. My friend told me that there are loads of formulas of no arbitrage pricing in first chapter.

    • @MarkMeldrum
      @MarkMeldrum  5 ปีที่แล้ว +2

      All the EOC questions are solved the same way in the review videos on my site.

    • @piyushbothra8961
      @piyushbothra8961 5 ปีที่แล้ว

      @@MarkMeldrum Thank you. I ll check it out.

    • @piyushbothra8961
      @piyushbothra8961 5 ปีที่แล้ว

      @Mark Meldrum Sir just wanted to know that does your course provide some revision videos or concise videos that we as candidates can go through before 10 days of exams

  • @faizaanazam
    @faizaanazam 5 ปีที่แล้ว

    Thank you so much!

  • @krunalsonawane9853
    @krunalsonawane9853 5 ปีที่แล้ว

    Do you have FRM videos too?

  • @hriday.
    @hriday. 3 ปีที่แล้ว +1

    G O D

  • @chunbinzheng8205
    @chunbinzheng8205 5 ปีที่แล้ว

    Hi mark
    For the notes that you are selling, are they the notes like you wrote in the vedios or they like the proper lecture slices notes? And where can I buy for cfa level 2 notes?
    Thanks

    • @MarkMeldrum
      @MarkMeldrum  5 ปีที่แล้ว

      The notes look just like the screen, except on white background. For Level 2 and 3, they are only available with a subscription. They would not be very useful without the videos.

    • @chunbinzheng8205
      @chunbinzheng8205 5 ปีที่แล้ว

      @@MarkMeldrum hi, I have just bought level 1 derivative and investment for trail. Another questions I would like to ask. Would you recommend to read all the text book readings but not take notes. And use the notes you have provided as a review material?
      Thanks

    • @MarkMeldrum
      @MarkMeldrum  5 ปีที่แล้ว

      The notes are what you would take if you were reading the books - so I save you all that time. Use mine with the videos. However, if you are using Level 1 on TH-cam, use gumroad.com/markmeldrum

    • @chunbinzheng8205
      @chunbinzheng8205 5 ปีที่แล้ว

      @@MarkMeldrum so basically read the text book to understand all the content but not spend too much time to draw my own notes? I am waiting for level 1 result next week and I have good confidence to pass so juts preparing for level 2

    • @MarkMeldrum
      @MarkMeldrum  5 ปีที่แล้ว

      Correct.