Understand various derivative instruments (forwards, futures, options, and swaps), derivative markets, and the use of options in risk management.
Derivatives are financial instruments that derive their value from the value of some underlying asset. They have become increasingly important and fundamental in effectively managing financial risk and creating synthetic exposures to asset classes.
This course provides a solid understanding of the various derivatives (forwards, futures, options, and swaps), derivative markets, and the use of options in risk management.
Module 1: Overview of Derivative Markets
The first module introduces the concept of derivatives and provides an overview of the various types of derivative contracts. You will learn about the basic terminology and definitions related to derivatives.
Module 2: Futures and Forwards
This module provides a thorough understanding of futures and forwards. You will learn about the various types of futures and forwards, how they work, how they are traded and how these derivatives are priced and valued. (See the class curriculum below for more details)
Module 3: Options
This module introduces you to the various options contracts. You will lean about the call and put options, European vs. American options, various types of option contracts and their terms, pricing of options, option payoffs, put-call parity and other important option-related concepts.
Module 4: Swaps
This section introduces the concept of swaps. You will learn about the various characteristics of swaps, and how to calculate the payments in different types of swaps such as interest rate swaps, equity swaps and currency swaps.
You will also learn about cash flows of different types of swaps, how payments are calculated and how the cash flows from a swap can be duplicated by a combination of other derivative instruments.
Module 5: Risk Management Applications of Option Strategies
In this module, you will learn about how option strategies can be used for risk management. You will learn about how to interpret the payoff diagram of various option strategies such as single call, single put, protective call and protective put strategies.
If you have a monthly or yearly subscription for Finance Train, you will already have access to this course in your course bundle. If not, then you can purchase this course independently for a price of $19 or you can take our monthly subscription that gives you access to all our courses.
The Finance Train’s Financial Data Scientist program is designed to be a monthly subscription program where new courses are added every week to help you keep yourself up-to-date with the latest in financial data science. The courses focus on teaching programming languages such as R and Python. Along with this it also includes courses covering concepts in quantitative methods and various finance topics. All the tutorial examples, data sets used, and projects are focused on application of data science in the finance field.