Chapter 1
Introduction to Derivatives
Definition, types, and functions of derivatives
medium • 1 min read
Participants: Hedgers, Speculators, Arbitrageurs
medium • 2 min read
Evolution and growth of derivative markets
medium • 3 min read
Over-the-Counter (OTC) versus Exchange-Traded markets
medium • 4 min read
Underlying assets (Commodities, Equities, Interest rates, Currencies)
medium • 5 min read
Chapter 2
Forwards and Futures
Features of forward contracts and their limitations
medium • 1 min read
Mechanics of futures markets and margin requirements
medium • 2 min read
Marking to market and clearinghouse operations
medium • 3 min read
Pricing of forwards and futures (Cost of Carry model)
medium • 4 min read
Hedging strategies using futures (Cross-hedging, Hedge ratio)
medium • 5 min read
Chapter 3
Options Contracts
Call and Put options, European vs. American options
medium • 1 min read
Moneyness of an option (ITM, ATM, OTM)
medium • 2 min read
Payoff profiles of options at expiration
medium • 3 min read
Option trading strategies (Spreads, Straddles, Strangles)
medium • 4 min read
Put-Call Parity theorem
medium • 5 min read
Chapter 4
Option Pricing and Greeks
Factors affecting option prices
medium • 1 min read
Binomial option pricing model (Single and Multi-period)
medium • 2 min read
Black-Scholes-Merton (BSM) model assumptions and formula
medium • 3 min read
Implied volatility
medium • 4 min read
The Option Greeks (Delta, Gamma, Theta, Vega, Rho)
medium • 5 min read
Chapter 5
Swaps and Risk Management
Mechanics of Interest Rate Swaps (IRS)
medium • 1 min read
Currency swaps and their valuation basics
medium • 2 min read
Credit Default Swaps (CDS) and credit risk
medium • 3 min read
Value at Risk (VaR): Concept, calculation methods
medium • 4 min read
Stress testing and scenario analysis
medium • 5 min read