Swaps, Forwards, and Futures Strategies

Free CFA Level III: Portfolio Management lesson in Derivatives & Risk Management. 32 min read, ~4,822 words.

Number of equity futures = (Target beta - Current beta) / Futures beta x (Portfolio value / Contract value). Pre-investing cash with futures creates synthetic equity exposure while cash remains in money market. Duration management with bond futures: Number of contracts = (Target DD - Current DD) / DD per...

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