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All posts for the month June, 2022

The option Greeks – delta, gamma, theta, vega, and rho – refer to sensitivities of the price of an option to various underlying variables.  Here, we’ll be talking about options on stocks, though the discussion would be equally appropriate for options on, say, commodities.  It would not be appropriate for a discussion of options on […]

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CFA® Level II Derivatives Membership, CFA® Level II Membership, CFA® Level III Membership, CFA® Level III Derivatives Membership

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Let’s start by addressing the elephant in the room: the name “FX swap” is just plain weird.  This isn’t a swap in any normal sense of the word swap: it isn’t an exchange of cash flows at some predetermined future date(s).  An FX swap is nothing more nor less than rolling over an expiring currency […]

This article is for members only.  You can become a member now by purchasing a

CFA® Level III Membership, CFA® Level III Derivatives Membership

This will give you access to this and all other articles at that membership level.