
Important Note" Since it is difficult for students with limited knowledge about derivatives to understand the definition, I have begun the course with few real life situations and then linked situation with the definition. Hence, I will advise you to watch the videos in the manner that they are listed (follow the sequence) as later videos in this section contain examples explained in the earlier videos.
Explains the purpose of derivative contracts/ instruments
Describes the term "hedging"
Explains the basic structure of a Derivative instrument and how it is used to hedge against market risks
Describes "Long", "short" and "Underlying", with the help of examples
This video explains
Contract Execution
Gain/Loss
This lecture explains the difference between the cash settlement and physical settlement. The purpose here is to help students understand that outcome under both the contracts will be same.
Explains the Definition of derivatives instruments by linking definition to the situation explained in the earlier videos.
This video explains
The types of derivative contracts
Difference between forward commitments & contingent claims
Difference and Similarity between Forward, Futures & Swaps
Explains the structure of a Forward instrument with Exchange rate as an underlying asset.
This video explains the structure of a Forward instrument with Interest rate Benchmark rate as an underlying asset called Forward Rate Agreement (FRA)
This video explains "Initial Margin", "Maintenance Margin" and "Mark to Market"
Comprehensive example to explain how businesses use Futures Contracts for hedging
Explains the Structure of a Call Option
What you will learn?
Types of Derivative Instruments and markets
Definitions and terminologies
Requirements
None
Description
If you are a beginner and don’t know much about Financial Derivatives. Then you have come to the right place as I have covered all the concepts from scratch.
Why you should take this course? What value it will add?
Let me first discuss some problems and issues that students encounter when they study Financial derivatives.
First, Financial derivatives is one of the complexed courses in Finance, as the students need to have a strong knowledge about fundamentals of Finance to understand the pricing and valuation of financial derivatives instruments.
Second, one concept leads to another, so students find it difficult to understand linkages between various interlinked concepts.
Third, many of the concepts covered in Financial derivatives are difficult to relate to real life examples as compared to the other subjects in Finance such as Corporate Finance or Financial Reporting and Analysis.
I have tried to address the above mentioned issues
By adding complementary lectures to explain fundamentals of finance which are relevant to the topics covered in the Financial derivatives
I have divided the concepts into various parts and explained each part separately and also how all components are related to one another
I have included examples and focused on relating a concept to a situation. This will help students to visualize, which in turn help them to retain the concepts
Used plain language
This course is divided into three sections
Introduction
Forward & Futures
CDS, Options and SWAPs
I will advise you to watch the videos in the manner that they are listed as videos in the later sections contain examples explained in the earlier videos.
Who this course is for
This course is for CFA Level 1 Candidates
This course is for students who are interested in studying Financial derivatives at University level programs