
A quick introduction to the fascinating world of financial derivatives. What, why, when, who...(reads like a thriller, doesn't it?)
My article on Financial Derivatives is included as an additional resource, courtesy, The Institute of Cost Accountants of India (Knowledge Bank), & The Institute of Cost Accountants of India, Pune Chapter (Research Publication, Golden Jubilee Celebration, January 2016). The link is provided from the IFAC (International Federation of Accountants) Global Knowledge Gateway.
Forward Contracts, Future Contracts, the Distinctions between the two.
Plus, a brief description of counter-party risk & margins.
The pricing of forward & future contracts. No-arbitrage price & arbitrage opportunities.
Reverse Cash & Carry Arbitrage & the all-important concept of Convergence
Quick discussion on payoffs in futures & forwards
Introduction to Options, calls, puts, European, American.
Moneyness of Options. Payoffs vs Profits in Options
Tricky, very tricky. How does one price options?
What is a hedge? How does it work?
Basic understanding of Swaps & how they are set up.
Financial Derivatives are powerful tools, with huge downside risks. Please use abundant caution.
This is an introductory course on financial derivatives. No prior knowledge of derivatives markets is necessary.
Forwards, futures, options, swaps are explained simply. Each video attempts to explain the logic behind the relevant theories.
Additional matter has been included to supplement the videos. Some advanced material is also included, for the intermediate-level student who wishes to learn more.
There is a short quiz after every video to strengthen your concepts.
"Understanding Financial Derivatives" will explain the power of these financial tools & seek to alert you to the dangers & pitfalls of misuse & abuse of these potent, dangerous financial instruments.
And of course, the Final Exam.....enjoy proving to yourself that you know the subject.
Thank you & Happy Learning.