CFA® Level I Exam Derivatives Practice Questions
Derivatives (Derivatives and Risk Management in the 2027 curriculum) is 6–9% of the CFA® Level I exam, up from 5–8%. Practice original questions on instruments, arbitrage pricing and option values.
180 three-choice questions in two timed sessions of 135 minutes, weighted like the real exam, with a score by topic and the full working for every answer. 13 of the 180 questions are derivatives and risk management.
Or try the free derivatives drill- 46 original derivatives and risk management questions with worked answers
- 6–9% of the exam under the 2027 curriculum, session 2
- 13 of the 180 questions in our full mock
An analyst prices a one-year forward contract on a non-dividend-paying stock using arbitrage-free pricing. The no-arbitrage forward price most likely depends on:
What our derivatives and risk management questions cover
- Forward commitments vs contingent claims; exchange-traded vs over-the-counter markets and central clearing
- Benefits, risks and uses of derivatives for issuers and investors
- Arbitrage, replication and the cost of carry
- Forward and futures pricing and valuation, including income and costs of the underlying
- Swaps as a series of forwards
- Option payoffs and profits, moneyness, intrinsic and time value, put–call parity and the one-period binomial model
This list is our own summary of the topic, written for practice. The official topic outline and learning outcomes are published by CFA Institute for registered candidates. The 2026 curriculum called this topic Derivatives.
Drill derivatives and risk management, then sit the full mock
180 three-choice questions in two timed sessions of 135 minutes, weighted like the real exam, with a score by topic and the full working for every answer. 13 of the 180 questions are derivatives and risk management.
Or try the free derivatives drillIdeas the questions test most
- With no income or costs, the no-arbitrage forward price is F₀(T) = S₀ × (1 + r)^T. Income from the underlying lowers the forward price; carrying costs raise it.
- Futures are marked to market every day through margin accounts; forwards settle at the end.
- Put–call parity: S₀ + P₀ = C₀ + X ÷ (1 + r)^T. A fiduciary call equals a protective put.
- An option’s value is its intrinsic value plus its time value. Higher volatility raises the value of both calls and puts.
- In the one-period binomial model, the risk-neutral probability of an up move is (1 + r − d) ÷ (u − d).
Start the free derivatives and risk management drill · Full Level I mock exam · Mixed drill
Common questions
How much derivatives is on the CFA Level I exam?
Derivatives and Risk Management is 6–9% of the Level I exam under the 2027 curriculum; Derivatives was 5–8% under 2026. It is tested in session 2.
Do I need option pricing models for Level I?
At Level I you need payoffs and profits, the factors that move option values, put–call parity and put–call–forward parity, and the one-period binomial model with risk-neutral probabilities.
180 three-choice questions in two timed sessions of 135 minutes, weighted like the real exam, with a score by topic and the full working for every answer. 13 of the 180 questions are derivatives and risk management.
Or try the free derivatives drillMore Level I topics
- Ethical and Professional Standards · 10–15%
- Quantitative Methods · 11–14%
- Economics · 6–9%
- Financial Statement Analysis · 11–14%
- Corporate Finance · 6–9%
- Equities · 11–14%
- Fixed Income · 11–14%
- Alternative Investments · 6–9%
- Portfolio Construction · 8–12%
Topic weights and exam format: CFA Institute: Level I exam (format and topic weights), checked November 2026.
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