Derivatives for Level 1 CFA® Exam

      A derivative is a financial instrument whose value depends on the value of some underlying asset. There are a number of different assets that may serve as underlying assets for derivatives, for example stocks, stock indices, bonds, interest rates, exchange rates, commodities, other derivative instruments, and so on. Very often the change in the price of the underlying asset, say a share, affects the value of the derivative. 

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