Swaps, Forwards, and Futures Strategies
Free CFA Level III: Private Wealth lesson in Derivatives & Risk Management. 32 min read, ~4,761 words.
Number of equity futures = (Target beta - Current beta) / Futures beta x (Portfolio value / Contract value); if target beta is 0 it removes all equity exposure, and futures beta is not always 1.0. Equitizing (pre-investing) cash creates synthetic equity exposure while cash sits in the money market...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- swaps forwards futures
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