Mastering Financial Derivatives 101

Learn about Futures, Forwards, Options, Swaps, Bull Spreads, Covered Calls, Applications, and Risk Management

What you’ll learn
Develop a foundational understanding of derivatives, their types, and their roles in financial markets.
Gain the ability to differentiate between futures and forward contracts, and understand their structure, characteristics, and pricing.
Acquire knowledge of Mark to Market (MTM) principles and their application to financial instruments and statements.
Attain a comprehensive understanding of options, their pricing factors, and the calculation of option premiums.
Develop the skills to create, assess, and implement various options trading strategies effectively.
Gain insights into SWAP agreements, their mechanics, and the benefits and risks involved.
Apply theoretical knowledge to real-world scenarios through the analysis and evaluation of complex derivative transactions and strategies.

Requirements
Learners should know basic finance, math, and accounting, be able to analyze data.

Description
This course offers a comprehensive introduction to financial derivatives and their role in risk management, covering key concepts and practical strategies for futures, forwards, options, and swaps. Through a blend of theoretical lessons and real-world case studies, students will develop the skills necessary to effectively utilize derivatives in various financial markets. The curriculum includes modules on the overview of derivatives, pricing and valuation of futures and forwards, the importance and calculations of Mark to Market (MTM), options and options strategies, and the structure and valuation of swaps. A final case study will provide practical application of the concepts learned. Students will emerge with the ability to understand, analyze, and apply derivatives for hedging and risk management. Assessment methods include quizzes. Basic knowledge of finance and financial markets is recommended. This course is ideal for finance students and professionals looking to deepen their understanding of derivatives. Graduates of this course will be well-prepared to navigate the complexities of modern financial markets. They will also gain a competitive edge in careers related to finance and risk management.The following is the course structure;Module 1: Introduction to DerivativesOverview of derivatives: forwards, futures, options, and swapsKey concepts and terminologyHedging and speculation strategiesModule 2: Futures and ForwardsUnderstanding futures and forward contractsPricing and valuationModule 3: Fundamentals of Mark to Market (MTM)Importance and calculations of MTMRole in financial reporting and risk managementNumericalsModule 4: OptionsCalls and putsFactors influencing option pricesNumericalsModule 5: Options StrategyBasic and advanced options strategiesRisk and reward profilesPractical applicationsModule 6: SwapsInterest rate, currency, and commodity swapsStructure and valuationRisk management applicationsModule 7: Case StudyReal-world application of derivativesAnalysis and discussion

Who this course is for
This course is ideal for anyone interested in understanding derivatives, including finance professionals, students, investors, accountants, and traders.