Month: May 2013
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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…
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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…
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CFA Level 2: Quantitative Methods – Autoregressive Processes
Hello again everybody, We’re getting towards the final straight line before the exam, and I will post here the content of all the little flash cards that I created for myself. Starting back where I left, in the Quantitative Methods this post will be about Autoregressive Processes sometime denoted AR. These processes are of the following…