Financial Derivatives – Instruments for Risk Management

8 topics

1. Introduction to Financial Derivatives
2. Forward and Futures – Meaning and Difference, Pricing, Stock Futures, Index based Futures, Hedging through Futures
3. Options: Meaning, Features and Types of Options, Option vs. Forward and Futures, Profitability of Option, Profit Profile of Buyer and Seller, Value of Option, Determination of Option Premium
4. Options: Option Strategies
5. Options: Put-Call Parity Relationship, Valuation of Options using Binomial Tree Approach and Black-Scholes Model, The Greeks
6. Swaps: Meaning, Features, Types, Benefits of Swaps
7. Swaps: Interest Rate Swaps, Credit Default Swaps
8. Interest Rate Derivatives – Forward Rate Agreement, Interest Rate Futures and Options, Caps, Floors and Collars