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.

Financial derivatives has gained immense popularity across the globe resulting in huge demand for certified professionals.

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.

Financial derivatives certified professionals, executives and managers are in high demand in companies across the globe.

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

Knowledge and Skills required for the Financial Derivatives

Specific skills are needed to excel in career of financial derivatives which includes analytical bent of mind and quick learning skills.

Financial Derivatives Practice Exam Objectives

Financial Derivatives exam focuses on assessing your skills and knowledge in concepts and application of derivatives and options.

Financial Derivatives Practice Exam Pre-requisite

There are no prerequisites for the Financial Derivatives exam. Candidates who are well versed  in derivatives and options can easily clear the exam.

Financial Derivatives Certification Course Outline

1. Interest rate fundamentals
2. Periodic and continuous compounding
3. Discounted cash flow analysis
4. Bond analysis
5. The fundamentals of equity, currency, and commodity assets
6. Portfolio modeling
7. Long and short positions
8. The principle of arbitrage
9. The Law of One Price
10. Forwards, futures, and swaps
11. Risk management principles
12. Futures hedging
13. Stochastic processes
14. Time series concepts
15. The real statistics of asset prices: volatility clustering and autocorrelation
16. Fat-tailed distribution and their importance for financial assets
17. Brownian motion
18. The log-normal model of asset prices
19. Put-call parity
20. The binomial model of option pricing
21. The Black-Scholes theory and formula
22. Option greeks: delta, gamma, and vega
23. Dynamic hedging
24. Volatility trading
25. Implied volatility

Exam Format and Information

Certification name – Certificate in Financial Derivatives
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199