Category: CFA

  • CFA Level III: Implementation Shortfall

    Good evening, A quick post tonight to discuss a topic of Trading, Rebalancing and Monitoring part of the Level III curriculum called Implementation Shortfall. The reason why I chose to do this is because it took me some time to overcome the naming conventions of the CFA institute, which are, with all due respect, very…

  • CFA Level III: Interest Rate Parity

    Hello everyone, Today I’m gonna talk about some economic concepts that were mentioned at least since Level II and that are quite useful in the whole curriculum and in finance in general when it comes to dealing with currency management. Covered Interest Rate Parity The idea is quite simple, we will compute the forward exchange…

  • CFA Level III, here I come!

    Good evening everyone! I know it’s been a long time since I last posted on the site and I would like to apologize for not having been adding new content since the end of May. Quite frankly the reason why I’ve been away from the blog from a long time is twofold. First, I am…

  • CFA Level II: Valuating Bonds with Embedded Options

    Good evening everybody, Tonight’s focus will be dedicated to valuing bonds with embedded options. I chose this topic because it involves binomial trees, which is an important an very testable point of the Level II curriculum.  Binomial trees are encountered in two different topics: Fixed Income and Derivatives. Although the concept is the same for…

  • CFA Level II: Forward Markets and Contracts

    Good evening, A few days away from the exam, I am taking a bit of time to post the main picture of some topics on the curriculum, which I think can be simply explained. This post is dedicated to forwards. The rationale behind forwards is very simple. Assume there is an asset $S$ which is worth…