Tutorial lessons
MODULE 08 — Derivatives
Browse the lessons available in this tutorial category.
Lessons
Tutorial lessons
DER 1 Derivative Instrument and Derivative Market Features
Learn the key features of derivative instruments, common underlyings, and the differences between OTC, exchange-traded, and centrally cleared markets.
DER 2 Forward Commitment and Contingent Claim Features and Instruments
Learn the features, payoffs, risks, and uses of forwards, futures, swaps, options, and credit derivatives, including firm commitments and contingent claims.
DER 3 Derivative Benefits, Risks, and Issuer and Investor Uses
Learn the benefits and risks of derivatives, including leverage, hedging, price discovery, hedge accounting, and how issuers and investors use them.
DER 4 Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives
Learn how arbitrage, replication, and the cost of carry determine derivative prices, including forward pricing, spot-forward relationships, dividends, storage costs, FX forwards, convenience yield, an
DER 5 Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities
How a forward is priced at the start, marked to market through its life, settled at expiry, and how forward interest rates are built from the term structure. Check-yourself items are study aids. Price
DER 6 Pricing and Valuation of Futures Contracts
Learn Pricing and Valuation of Futures Contracts, including futures pricing, mark-to-market, margin accounts, forward vs futures, interest rate futures, convexity bias, daily settlement, and derivativ
DER 7 Pricing and Valuation of Interest Rate and Other Swaps
Learn Pricing and Valuation of Interest Rate and Other Swaps, including par swap rate, swap valuation, forward rate agreements (FRAs), fixed-for-floating swaps, swap pricing, settlement, and interest
DER 8 Pricing and Valuation of Options
Learn Pricing and Valuation of Options, including exercise value (intrinsic value), time value, moneyness, option price bounds, option replication, no-arbitrage pricing, and the factors affecting Euro
DER 9 Option Replication Using Put-Call Parity
Learn Option Replication Using Put-Call Parity, including protective puts, fiduciary calls, synthetic positions, option replication, synthetic forwards, no-arbitrage pricing, and applications of put-c