Derivatives: Basic Instruments and Fundamentals of Options

Derivatives: Basic Instruments and Fundamentals of Options

This course is about 'Basics of the Derivatives market and all its Fundamental Instruments' as well as 'Fundamentals of Options'.

In 'Basics of the Derivatives market and all its Fundamental Instruments', below topics will be covered:

You will gain knowledge about the below points:

· What is the need for the derivatives?

· What are derivatives?

· What is the most important objective of a derivative?

· What are the Key Characteristics of derivatives?

· What are the sources of Risk in the financial assets?

· How to handle the risk of financial assets?

· What are:

• Various Derivative Market with their key characteristics-

  • Over the Counter (OTC)

  • Exchange Traded

• Forward Commitments:

  • Forward contracts – Definition and Example for the Settlement and Payoff

  • Future Contract – Definition, and Example for the Settlement and Payoff, and

  • Swaps - Definition

    • Fixed-for-Floating Interest Rate Swap

• Contingent Claims:

  • Options:

    • Call- Buyer's perspective

    • Call- Seller's perspective

    • Put - Buyer's perspective

    • Put - Seller's perspective

  • Credit Derivatives and

  • Credit Default Swap

    • Asset-Backed Securities (ABS):

      • Collateralized Mortgage Obligation (CMO)

      • Collateralized Debt Obligation (CDO)

In 'Fundamentals of Options', below topics will be covered:

· What are options and their key terminologies such as ITM, OTM, ATM, Put Call Ratio, and Types of options?

· What is the need for options?

· What are the key objectives of options?

· How to read, understand and analyze an option chain?

· How to read, understand and analyze an option chain?

· What are various option strategies?

· What are the most basic payoff profiles?

· What is replication?

· What are implied volatility, Skew, and Smile of options?

· What are Greeks - Delta, Gamma, Vega, Theta, and Rho?

· What is Put Call Parity, Put Call Forward Parity?

All the above are must-know foundations concepts for anyone who is interested or involved in advising clients in the financial market in general and securities such as Equity (Stocks) and Fixed Income (Bonds) in particular. You must know these basics before moving to the next level of knowledge.

With the help of this course, you have the unique opportunity to learn one of the important life skills in a very short span. The material is comprehensive and well structured. I enjoyed curating it and trust that you will enjoy learning from it.

Welcome Onboard. And, I wish you a joyful learning experience!!!

Must know concepts for any financial market participants (Trader, Investment Advisor, Equity Investor, and Fund Manager)

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What you will learn

• Basics of Derivative
• Types of derivative markets
• Classification of derivatives

Rating: 0

Level: Beginner Level

Duration: 3.5 hours

Instructor: Surender Singh