Financial Derivatives
About Financial Derivatives
Financial derivatives are financial products that are tied to a particular financial instrument, indicator, or commodity and allow for the independent trading of certain financial risks on financial markets.
Futures contracts, options contracts, and credit default swaps are typical types of derivatives.
Why is Financial Derivatives important?
Financial derivatives allow parties to trade particular financial risks (like interest rate, currency, equity, and commodity price, as well as credit risk) to other entities that are more willing or better suited to take or manage these risks — typically, but not always, without trading in a primary asset or commodity.
Who should take the Financial Derivatives Exam?
- Stock market managers, senior executives, executives
- Investment managers, senior executives, executives
- Technical professionals who want to learn about quantitative finance
- Finance professionals
Financial Derivatives Certification Course Outline
- Interest rate fundamentals
- Periodic and continuous compounding
- Discounted cash flow analysis
- Bond analysis
- The fundamentals of equity, currency, and commodity assets
- Portfolio modeling
- Long and short positions
- The principle of arbitrage
- The Law of One Price
- Forwards, futures, and swaps
- Risk management principles
- Futures hedging
- Stochastic processes
- Time series concepts
- The real statistics of asset prices: volatility clustering and autocorrelation
- Fat-tailed distribution and their importance for financial assets
- Brownian motion
- The log-normal model of asset prices
- Put-call parity
- The binomial model of option pricing
- The Black-Scholes theory and formula
- Option greeks: delta, gamma, and vega
- Dynamic hedging
- Volatility trading
- Implied volatility