Derivatives
- Description
- Curriculum
- Reviews
Goal of the course – This course will help the participant understand one of the most important segments of financial markets i.e. the Derivative Market. The size of this market is roughly estimated to be around 10 times the World’s GDP. This market consists of many complex but important instruments such as futures, forwards, options and swaps. These contracts are widely used by individuals and institutions in order to effectively manage the various types of risks that they are exposed to. Considering the size and importance of this financial product, it is absolutely essential for a finance aspirant to be well versed with at least the basic concepts of Derivatives.
Target audience –
- Under – Graduate
- Graduate
- Post – Graduate
- Professionals
- Experienced
Prerequisites –
- Basic English
- Basic Knowledge of Financial Markets
- Basic Mathematics
Competencies Built –
- Product knowledge and operations
- Analytical skills
- Risk Management Techniques
- Strategic thinking
- Market Research
Industry application – Most recruiters require candidates to be proficient in the understanding of derivative instruments. The competencies and skills built through this course will be useful for candidates seeking a career in domains related to –
- Portfolio / Fund Management
- Financial Planning and Advisory
- Investment Banking
- Risk Management
- Treasury Management
- Institutional Trading Desk
- Research
- Accounting, Auditing, and Taxation
-
1Introduction Video - Derivatives
-
2What is a Derivative?
-
3Definition of Derivatives
-
4Types of Derivatives
-
5Features of the Derivative Contract
-
6Trading and Settlement of Derivatives
-
7Participants in Derivative Markets
-
8Size of the Derivative Market
-
9Significance of Derivative Market
-
10Criticism of Derivative Market
-
11Quiz - Introduction to Derivatives
-
27Introduction Video - Futures Contract
-
28Introduction and Features of the Futures Contract
-
29Futures Contracts Examples
-
30Other Features of the Futures Contract
-
31Trading and Settlement of Futures Contract
-
32Tick Size and Point Value
-
33Volume and Open Interest
-
34Using Open Interest and Volume help to identify the current market trend
-
35Daily Price Movement and Position Limits
-
36Mark-to-Market
-
37Margin Requirements
-
38Quiz - Futures Contract
-
39Pricing of Futures, Contango and Backwardation
-
40Convergence
-
41Basis
-
42Physical Delivery
-
43Rollover
-
44Basic fundamentals of Options
-
45Introduction Video - Options
-
46Call Option
-
47Introduction Video - Options (Contd..)
-
48Put Option
-
49Default Risk in Options
-
50Summary of Call and Put Options
-
51Rationale behind trading options
-
52Introduction to Pricing of options
-
53Moneyness of the Options
-
54Quiz - Options
-
55Introduction Video - Swaps
-
56Introduction to Swap
-
57History of Swap
-
58Floating Interest Rates
-
59Interest Rate Swap
-
60Example of Interest Rate Swap
-
61Use of Swap to Transform a Liability
-
62Using a Swap to Transform an Asset
-
63Swap Rate
-
64Value of Swap
-
65Confirmation
-
66Risks faced by parties
-
67Commodity Swap
-
68Fixed for Floating Commodity Swaps
-
69Commodity-for-Interest Swaps
-
70Debt-Equity Swap
-
71Equity-Debt Swap
-
72Total Return Swap Contract
-
73Example of Total Return Swap
-
74Terminologies of Total Return Swap
-
75Rationale behind taking positions in the TRS
-
76Uses of a Total Return Swap
-
77Risks and Considerations of TRS
-
78Quiz - Swaps
-
79Introduction to Credit Derivatives
-
80Types of Credit Derivatives
-
81Credit Events
-
82Credit Default Swap
-
83Terminologies of Credit Default Swap
-
84CDS Spreads and Maturities
-
85Risks in CDS
-
86Naked CDS
-
87Who determines whether a credit event has occured?
-
88Settlement of CDS
-
89Rationale behind taking positions in CDS
-
90Similarity of CDS and Put Options
-
91Trends in the CDS Market