Derivatives Fundamentals - Part I
Derivatives are financial products whose value is derived from the value of an underlying asset or benchmark. These assets or benchmarks can be anything from equities and bonds, to currencies and interest rates. In this first pathway we shall introduce derivatives before delving further into the specifics in the second pathway.
CPD credits earned
Certificates
Watch all the videos and pass the test to obtain a certificate showing your completion of this Pathway. Certificates can be shared directly to your LinkedIn profile and social media accounts.
11 video modules • 2 hours 39 minutes
Introduction to Interest Rate Swaps and Use Cases
David provides an overview of interest rate swaps - what they are, why they are used, typical parties involved and key components of the derivative.
David Leeming • 17:58
Interest Rate Swaps Pricing
One of the most common types of derivative is an Interest Rate Swap. In this video, David explains how to price Interest Rate Swaps, and introduces the yield curve and the concept of basis swaps.
David Leeming • 13:40
Introduction to Options, Pricing and Use Cases
Peter provides an overview of the basic methodology behind pricing options.
Peter Eisenhardt • 13:18
The Put-Call (Options) Parity
In this video Abdulla outlines the concept of Put-Call Parity and how to formulate it into an expression and get all six combinations (long and short positions). He describes the arbitrage-free relationship between call and put premiums for European options. Perhaps most importantly, Abdulla explains how to take advantage of risk-free profit that arises from arbitrage opportunities
Abdulla Javeri • 06:01
Introduction to FX Options
In an option transaction, one party will have the right to execute a spot transaction some time in the future at an agreed rate. Kees provides an introduction to this specific contract by explaining what options are, before expanding into elements such as assessing the payoff and fair value.
Kees van den Aarssen • 21:10
FX Options Pricing
In this second part of the introduction to foreign exchange options, Kees discusses how to determine the fair value of an option by assessing the probabilities of option payouts.
Kees van den Aarssen • 13:02
FX Options and the Greeks
In this video, Kees van den Aarssen describes each of the option greeks and how they are calculated.
Kees van den Aarssen • 16:11
Introduction to Derivatives
A derivative is a financial product, whose price is derived from the price of another product. In this video Gontran briefs us about the history of derivatives and exchanges. He further explains the types of derivatives along with the usages and also highlights it's advantages and disadvantages.
Gontran de Quillacq • 18:48
Introduction to Linear Derivatives
The very first video on this series was a general introduction to derivatives – their history, their main categories, as well as the main benefits and drawdowns of using such instruments. In the second video on this series, Gontran takes us through the first ‘linear’ (non-optional) derivatives like "Futures" and "Forwards".
Gontran de Quillacq • 13:22
Futures and Forwards Pricing
In this video on this series, Gontran explains the pricing of futures and forwards, the repo adjustment and finally finishes by introducing the ISDA master agreement.
Gontran de Quillacq • 14:20
Introduction to Forward Rate Agreements and Their Uses
In this video, Permjit covers the use of a financial instrument called a Forward Rate Agreement to manage interest rate risk.
Permjit Singh • 11:28
