Derivatives - DrWaleKesh

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Derivative Instrument and Derivative Market Features 2 Topics

Lesson Content

0% Complete 0/2 Steps

a. define a derivative and describe basic features of a derivative instrument

b. describe the basic features of derivative markets, and contrast over-the-counter and exchange-traded derivative markets

Forward Commitment and Contingent Claim Features and Instruments 3 Topics

Lesson Content

0% Complete 0/3 Steps

a. define forward contracts, futures contracts, swaps, options (calls and puts), and credit derivatives and compare their basic characteristics

b. determine the value at expiration and profit from a long or a short position in a call or put option

c. contrast forward commitments with contingent claims

Derivative Benefits, Risks, and Issuer and Investor Uses 3 Topics

Lesson Content

0% Complete 0/3 Steps

a. describe benefits and risks of derivative instruments

b. compare the use of derivatives among issuers and investors

curriculum end of chapter questions

Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives 3 Topics

Lesson Content

0% Complete 0/3 Steps

a. explain how the concepts of arbitrage and replication are used in pricing derivatives

b. explain the difference between the spot and expected future price of an underlying and the cost of carry associated with holding the underlying asset

curriculum end of chapter questions

Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities 3 Topics

Lesson Content

0% Complete 0/3 Steps

a. explain how the value and price of a forward contract are determined at initiation, during the life of the contract, and at expiration

b. explain how forward rates are determined for interest rate forward contracts and describe the uses of these forward rates.

curriculum end of chapter questions

Pricing and Valuation of Futures Contracts 3 Topics

Lesson Content

0% Complete 0/3 Steps

a. compare the value and price of forward and futures contracts

b. explain why forward and futures prices differ

curriculum end of chapter questions

Pricing and Valuation of Interest Rates and Other Swaps 3 Topics

Lesson Content

0% Complete 0/3 Steps

a. describe how swap contracts are similar to but different from a series of forward contracts

b. contrast the value and price of swaps

curriculum end of chapter questions

Pricing and Valuation of Options 4 Topics

Lesson Content

0% Complete 0/4 Steps

a. explain the exercise value, moneyness, and time value of an option

b. contrast the use of arbitrage and replication concepts in pricing forward commitments and contingent claims

c. identify the factors that determine the value of an option and describe how each factor affects the value of an option

curriculum end of chapter questions

Option Replication Using Put–Call Parity 3 Topics

Lesson Content

0% Complete 0/3 Steps

a. explain put–call parity for European options

b. explain put–call forward parity for European options

curriculum end of chapter questions

Valuing a Derivative Using a One-Period Binomial Model 3 Topics

Lesson Content

0% Complete 0/3 Steps

a. explain how to value a derivative using a one-period binomial model

b. describe the concept of risk neutrality in derivatives pricing

curriculum end of chapter questions

About Instructor

Olawale Keshinro

33 Courses