Introduction to Derivatives

Overview:

 This course addresses the fundamental knowledge you need to know about derivatives. This course covers the definition, purpose, and components of each of the four main types of derivatives. You will learn to differentiate between forward, futures, options, and swaps contracts. You will also work on practical examples in Excel to calculate the profits/losses for each type of contract.

You will look at real-world examples of derivatives on the Bloomberg terminal. Additionally, you will work on example calculations in Excel to determine the profits/ losses generated from various types of derivatives. Upon completing this course, you should be comfortable explaining the differences between the types of derivatives and how they can be used for hedging and speculating purposes.

Course Content

In this course, you will gain knowledge about the following topics:

• Characteristics of derivative contracts
• Over-the-counter vs. exchange-traded
• Forward contracts
• Futures contracts
• Initial and maintenance margins
• Call and put options
• Moneyness (in-the-money, at-the-money, out-of-the-money)
• Swap contracts

Learning Objectives:

 Upon completing this course, you will be able to:

• Define, understand the purpose of, and know the components of each of the four main types of derivatives.
• Differentiate between forward, futures, options, and swaps contracts.

Who Will Benefit: 

 Anyone who would like to build up their understanding about the capital markets. This course is designed to equip anyone who desire to begin a career in investment banking, sales, and trading, treasury, or other areas of finance with the fundamental knowledge on derivatives.