Overview

This course will introduce derivatives in general, to demonstrate the common features of derivatives and how they differ from other sorts of financial instruments. The course will then segue into a detailed discussion - first on Futures contracts and then ultimately on Options contracts. Key characteristics will be identified, and contract features, pricing, applications, risk management, and hedging will be discussed.

This course is composed of 27 lectures within 6 sections:

  • Introduction to Derivatives
  • Introduction to Futures Contracts
  • Futures Contracts Trading and Cash Flows
  • Futures Pricing
  • Introduction to Options
  • Option Pricing and Applications

Learning Outcomes

What you'll Learn

  • You'll learn a general overview of derivatives
  • You'll be able to define what derivatives are and differentiate between different types
  • You'll learn the features of futures contracts, as well as trading and cash flows
  • You'll learn the fundamentals of options, their contract features, and pricing basics
  • You'll learn about futures contract pricing

Course curriculum

  • 1

    Slack Channel - Discussion Forum

    • Slack Channel
  • 2

    Introduction to Derivatives

  • 3

    Introduction to Futures Contracts

    • Futures Terminology and Contract Features
    • Futures Terminology and Contract Features (Slides)
    • Physical Delivery to Close a Futures Position
    • Physical Delivery to Close a Futures Position (Slides)
    • Cash Settlement, OTC Derivatives
    • Cash Settlement, OTC Derivatives (Slides)
    • Futures Clearinghouse and Third Party Contracts
    • Futures Clearinghouse and Third Party Contracts (Slides)
    • Futures Margins and Futures Contracts
    • Futures Margins and Futures Contracts (Slides)
  • 4

    Future Contracts Trading and Cash Flows

    • Clearinghouse and Futures Trades
    • Clearinghouse and Futures Trades (Slides)
    • Comparing Futures Versus Underlying Positions
    • Comparing Futures Versus Underlying Positions (Slides)
    • Futures Position Cash Flows and Hedging with Futures
    • Futures Position Cash Flows and Hedging with Futures (Slides)
    • Futures Positions: Risk and the Cost Taking Position
    • Futures Positions: Risk and the Cost Taking Position (Slides)
  • 5

    Futures Pricing

    • Cost of Carry/Carrying Charges
    • Cost of Carry/Carrying Charges (Slides)
    • Cost of Carry Pricing and The Forward Pricing Curve
    • Cost of Carry Pricing and The Forward Pricing Curve (Slides)
  • 6

    Introduction to Options

    • Option Fundamentals: Contract Features and Terminology FREE PREVIEW
    • Option Fundamentals: Contract Features and Terminology (Slides)
    • Option Contract Example: Long Call Positions
    • Option Contract Example: Long Call Positions (Slides)
    • Option Pricing Basics
    • Option Pricing Basics (Slides)
    • Time Value, Instrinsic Value and Moniness
    • Time Value, Instrinsic Value and Moniness (Slides)
    • Short Option Positions
    • Short Option Positions (Slides)
    • Investment Characteristic of Options
    • Investment Characteristic of Options (Slides)
    • Overview of Long Put, Short Call and Short Put Positions
    • Overview of Long Put, Short Call and Short Put Positions (Slides)
  • 7

    Option Pricing and Applications

    • Option Pricing and Sensitivities (Option "Greeks")
    • Option Pricing and Sensitivities (Option "Greeks") (Slides)
    • Option Deltas
    • Option Deltas (Slides)
    • Delta Hedging
    • Delta Hedging (Slides)
    • Delta Neutral Hedging Example
    • Delta Neutral Hedging Example (Slides)
    • Black-Scholes and Option Volatility (Vega)
    • Black-Scholes and Option Volatility (Vega) (Slides)
    • Implied Volatility and Volatility Trading
    • Implied Volatility and Volatility Trading (Slides)