CFA Level 2 Comprehensive Study
Guide + Exam Questions &
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, Value Additivity Principle - Answer: the value of a portfolio is
simply the sum of the values of each instrument held in the
portfolio.
Carry arbitrage model - Answer: A no-arbitrage approach in
which the underlying instrument is either bought or sold along
with an opposite position in a forward contract.
Convergence - Answer: As we approach expiration, the price
of a newly created forward or futures contract will approach
the price of a spot transaction
For futures contracts, the difference between the spot price
and the futures price is the - Answer: basis.
at market contracts - Answer: the forward price is negotiated
so that the market value of the forward contract on the
initiation date is zero.
Value of long (short) position - Answer: Vt = St - Ft
Vt = Ft - St
Guide + Exam Questions &
Solutions Graded A+
Professional Academic Assistance Services
Services Offered
• Proctored Exam Assistance
• Online Class Management (Full Course Support)
• Exam Preparation & Study Materials
• Assignments and Coursework Support
• Essay and Research Paper Writing
• Discussion Posts & Responses
• Editing and Proofreading
• Confidential Academic Consultation
Contact Information
Email:
WhatsApp link: https://wa.me/254704846336
Fast Response | Confidential | Reliable Academic
Support
Helping Students Achieve Academic Excellence
, Value Additivity Principle - Answer: the value of a portfolio is
simply the sum of the values of each instrument held in the
portfolio.
Carry arbitrage model - Answer: A no-arbitrage approach in
which the underlying instrument is either bought or sold along
with an opposite position in a forward contract.
Convergence - Answer: As we approach expiration, the price
of a newly created forward or futures contract will approach
the price of a spot transaction
For futures contracts, the difference between the spot price
and the futures price is the - Answer: basis.
at market contracts - Answer: the forward price is negotiated
so that the market value of the forward contract on the
initiation date is zero.
Value of long (short) position - Answer: Vt = St - Ft
Vt = Ft - St
