FINANCIAL DERIVATIVES indepth using EXCEL (24 hours)

Fee - INR 12000/$259 bank transfer

Financial Derivatives are one of the most powerful instruments in the global markets. Derivatives market is growing by leaps and bounds year over year. Understanding Derivatives Trading mechanism definitely helps investors to manage their risks effectively. Individuals as well as institutional investors can use derivatives to hedge their exposures effectively. This course tries to provide an indepth Understanding on the derivatives market. It starts right from What are derivatives and tries to cover the different derivative instruments, their pricing, trading and their other important characteristics.

Learning Outcomes

  • Get an Understanding of What are derivatives and the Derivatives Market.
  • Get exposure to the different derivatives instruments.
  • Get to learn about different types of derivatives - OTC Derivatives, Equity Derivatives, Credit Derivatives, Commodity derivatives etc.
  • Futures Trading, Options Trading mechanisms are covered in great detailed.
  • Role of Derivatives in Financial Risk Management especially in Credit Risk Management.

Veiw Demo Videos on Financial Derivatives indepth using EXCEL

Training Video Content

Sessions

Content Coverage

Duration

Video 1

Introduction to Derivatives, Exchange traded contracts, Over the counter, Forwards, Futures, call options, Put options, American Options, European Options, Swaps, payoffs, Hedgers, speculators, Arbitrageurs, Centralized Counterparties, Applications, Underlying assets, Open outcry, Electronic trading, Clearing House, Market Size, Long & short, Dangers of Derivatives, Dodd Frank Act

71 mins

Video 2

Introduction to Futures, Specification, Convergence of futures to spot price, Margin Accounts, OTC Market, Market Quotes, Delivery, Types of Traders, Types of Orders, Regulations, Accounting, Forward vs. Futures, Closing out, Contract size, Delivery Month, Price Limits, Position Limits, Initial Margin, Maintenance Margin, Clearing House, Basis, Credit risk, Bilateral Clearing, Trading volume, Open Interest, Settlement Price, Future Patterns, Important Days, Cash Settlement, Hedgers, Speculators, Arbitrageurs, Hedge Accounting

76 mins

Video 3

Basic Hedging Principles, Hedging using Futures, Arguments for and against hedging, Cross Hedging, Basis risk, Stock index futures, Stack and roll, Prefect hedge, short hedge, long hedge, cross hedging, Hedge Ratio, Tailing the Hedge, Hedging Equity Portfolio, Beta

96 mins

Video 4

Interest Rates, Measuring Interest rates, Zero rates, Bond pricing, Treasury Zero rates, Forward rates, Forward rate agreement, Duration, Convexity, Term structure interest rates, Spot rates, Types of interest rates, Treasury rates, Risk free rate, Treasury bills, Treasury bonds, LIBOR, Fed Fund rate, Repo Rate, Bond Yield, Par Yield, Bootstrap method, Zero curve, Payoff, Valuation, Modified duration, Bond portfolios, Expectations theory, Market Segmentation theory, Liquidity preference theory

137 mins

Video 5

Interest rate futures, Treasury bond futures, Eurodollar futures, day count, price quotation conventions, duration based hedging strategies using futures, hedging portfolios of assets and liabilities, Accrued interest, determining futures price, forward vs. futures interest rates,

63 mins

Video 6

Forward and future price determination, investments assets, consumption assets, short sales, investment asset forward price, known income, known yield, valuing forward contracts, stock indices future prices, forward and futures contract on currencies, commodities futures, expected future spot prices, pricing assumptions, Forward and futures price relation, index arbitrage, consumption commodities, convenience yields, normal backwardation, contango

108 mins

Video 7

Swaps, interest rate, exchange rate, equity returns, floating interest rate, fixed interest rate, fixed payer swap, fixed receiver swap, IR swap valuation, currency swap, Credit risk, interest rate currency swap

120 mins

Video 8

Stock options properties, Option Prices factors, Option prices upper boundaries, Option prices lower boundaries, Put Call parity, Dividend, Arbitrage opportunities, American put

53 mins

Video 9

Options introduction, Option markets mechanics, types of options, option positions, underlying assets, stock options specifications, trading, margin requirements, warrants, employee stock options, convertibles, over counter option markets, call option, put option, American options, European options, foreign currency options, index options, future options, strike prices, FLEX options, Credit event binary options, Binary options, DOOM options, Dividend and stock splits

57 mins

Video 10

Trading strategies involving options, option strategies, Covered call, Protective put, Spread strategies, Bull call spread, Bear call spread, Bull put spread, Bear put spread, Butterfly spread, Calendar spread, Diagonal spread, Box spread

69 mins

Video 11

Combination strategies, Straddle, Strangle, Strip, Strap, Collar, Interest Rate Caps and Floors, Long cap, Long call, Interest rate collar

32 mins

Video 12

Binomial Trees, One-Step Binomial Model, No-Arbitrage argument, Risk-neutral valuation, Two-Step Binomial trees, American options, Delta, Volatility matching with u and d, Options on other assets, Stock expected return, Binomial trees for options on indices, Binomial trees for options on currencies, Binomial trees for options on futures, Binomial model for dividend paying stock, Time dependent parameters, Monte-Carlo simulation, Variance reduction procedures, Finite difference methods, Gamma, Theta, Vega, known dividend yield, Known dollar dividend, Trinomial trees, Generating random samples from normal distributions,  Implicit finite difference method, Implicit vs. Explicit finite difference method

206 mins

Video 13

Black Scholes Merton Method, Lognormal property of stock prices, Rate of return, Expected return, Volatility, Black Scholes Merton differential equation, Risk Neutral Valuation, Black Scholes Merton Pricing formulas, Cumulative normal distribution function, Warrants and employee stock options, Implied Volatilities, Dividends, Black Scholes formula derivation, Prices of tradable derivatives, Application to forward contracts on stocks, VIX index, Fear factor

89 mins

Video 14

Greek letters, Sensitivity of derivative prices, Stop-loss strategy, Delta hedging, Gamma, Theta(time decay), Vega, Rho, Realities of Hedging, Scenario Analysis, Portfolio insurance, Naked and covered option positions, Delta of European stock options, Portfolio Gamma neutral, Relationship between Delta, Theta and Gamma

95 mins

Video 15

Volatility Smiles introduction, Volatility smiles for Calls and Puts, Foreign currency options, Equity Options, Characterizing Volatility smile, Volatility term structure, Volatility Surfaces, Greek letters, Put Call parity relationship, Lognormal distribution, Volatility skew

32 mins

Video 16

Exotic Options, Non-Standard American options, Gap options, Forward start options, Cliquet options, Compound options, Chooser options, Barrier options, Binary options, Lookback options, Shout options, Asian options, Options involving several assets, Exchange options, Volatility swaps, Variance swaps, Plain Vanilla options, Exotic options, Strike reset options, Knock out options, Knock in options, Parisian option, Rainbow options

65 mins

Video 17

Interest Rate Derivative Instruments, Interest Rate cap, Interest Rate collar, Interest Rate Floor, Valuing Interest rate cap

23 mins

Video 18

Credit Default Swaps, Insurance option, Short entity’s credit, Senior unsecured loan, Single name Credit default swaps, Index Credit Default swaps, Credit events, Credit default swaps settlements protocols, Market pricing of Credit default swaps, Expected loss, Upfront premium, Manage Credit exposure, Curve trade

39 mins

Who can Learn?

Professionals who are planning to get into Derivatives Trading or those who are looking to get an Indepth understanding of the Financial Derivatives Market so that they can perform their jobs better can take the help of this training. This training does not require any prior Understanding of trading, however if a person has some Understanding of basic terms of finance and basic process of trading, it is a value addition

Faculty profile