Financial Markets and Derivatives Fundamentals

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Financial Markets and Derivatives Fundamentals

This course is part of Financial Risk and Quantitative Finance Specialization

Instructor: EDUCBA

Included with

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7 modules

Gain insight into a topic and learn the fundamentals.

2 weeks to complete

at 10 hours a week

Flexible schedule

Learn at your own pace

7 modules

Gain insight into a topic and learn the fundamentals.

2 weeks to complete

at 10 hours a week

Flexible schedule

Learn at your own pace

What you'll learn

Analyze financial markets and derivatives including forwards, futures, options, and swaps.
Apply pricing models, arbitrage concepts, and hedging strategies in financial scenarios.
Evaluate interest rate risk, yield curves, and risk management techniques for decision-making.

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This course is part of the Financial Risk and Quantitative Finance Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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There are 7 modules in this course

Master financial markets, derivatives, and risk management with this complete FRM-aligned course.

Learn how futures, options, swaps, and pricing models work in real-world finance. This course is designed to help learners build a strong conceptual and practical foundation in financial markets and products. Starting from core market concepts, it progresses into derivatives pricing, arbitrage strategies, and advanced risk management techniques. You will explore how financial instruments like forwards, futures, options, and swaps are used to manage risk and generate returns. The course also covers interest rate dynamics, yield curves, duration, and hedging strategies used by professionals. With a structured approach combining theory and application, this course enables you to analyze financial scenarios, evaluate pricing models, and apply hedging strategies effectively. Ideal for FRM aspirants, finance students, and professionals, this course equips you with the skills needed for risk analysis, trading, and financial decision-making.

Build a strong foundation by understanding financial markets, derivative instruments, and payoff structures, enabling learners to interpret how risk is transferred and managed.

What's included

8 videos5 assignments

8 videosTotal 60 minutes

Derivative Markets7 minutes
Introduction to Financial Markets and Products11 minutes
Forward Contract9 minutes
Futures and Options11 minutes
Futures and Options Continues6 minutes
Payoff From Option and Forward5 minutes
Hedging3 minutes
Hedging Using Forwards8 minutes

5 assignmentsTotal 70 minutes

Introduction to Financial Markets10 minutes
Basics of Derivative Contracts10 minutes
Understanding Options and Payoffs10 minutes
Introduction to Hedging Concepts10 minutes
Graded - Foundations of Financial Markets30 minutes

Explore hedging, speculation, arbitrage, and market infrastructure to understand how participants interact and how markets maintain efficiency.

What's included

8 videos5 assignments

8 videosTotal 50 minutes

Hedging Using Options5 minutes
Speculation9 minutes
Arbitrage2 minutes
Futures market7 minutes
Margin6 minutes
Understanding Clearinghouse7 minutes
Regulatory Framework6 minutes
Hedging Strategies Using Futures8 minutes

5 assignmentsTotal 70 minutes

Hedging and Risk Reduction10 minutes
Arbitrage and Market Efficiency10 minutes
Market Infrastructure and Margins10 minutes
Regulation and Futures Hedging10 minutes
Graded - Market Participants and Trading Strategies30 minutes

Analyze basis risk, index hedging, and rolling strategies to evaluate real-world hedging effectiveness and portfolio risk management.

What's included

8 videos5 assignments

8 videosTotal 52 minutes

Basis Risk6 minutes
Sources of Basis Risk8 minutes
Hedging with Stocks Index Futures4 minutes
Tailing the Hedge7 minutes
Rolling Hedge Forward5 minutes
Working on Example8 minutes
Interest Rates8 minutes
Compounding6 minutes

5 assignmentsTotal 70 minutes

Understanding Basis Risk10 minutes
Index-Based Hedging10 minutes
Rolling and Practical Hedging10 minutes
Introduction to Interest Rate Markets10 minutes
Graded - Advanced Hedging and Risk Concepts30 minutes

Understand time value of money, yield curve construction, and duration-based risk measurement to assess interest rate sensitivity.

What's included

8 videos5 assignments

8 videosTotal 55 minutes

Compounding Continues4 minutes
Spot Rates7 minutes
Bootstrapping6 minutes
Forward Rate9 minutes
Duration11 minutes
Concept of Duration7 minutes
Modified Duration and Convexity6 minutes
Theories of Term Structure5 minutes

5 assignmentsTotal 70 minutes

Compounding and Rate Structures10 minutes
Yield Curve Construction10 minutes
Duration and Risk Measurement10 minutes
Advanced Duration Concepts10 minutes
Graded - Time Value of Money and Yield Concepts30 minutes

Apply pricing models for forwards and futures, including cost of carry, arbitrage, and advanced pricing adjustments for income and market conditions.

What's included

8 videos5 assignments

8 videosTotal 62 minutes

Investment and Consumption Assets6 minutes
Forward Price for an Investment Asset12 minutes
Valuing forward Contracts3 minutes
Currency and Commodity Futures10 minutes
Short Selling7 minutes
Forward Pricing and Known Income11 minutes
Currency and Commodity Features6 minutes
Delivery Options7 minutes

5 assignmentsTotal 70 minutes

Asset Types and Pricing Basics10 minutes
Forward Valuation Techniques10 minutes
Advanced Pricing Considerations10 minutes
Market Features and Delivery10 minutes
Graded - Pricing and Valuation of Forwards & Futures30 minutes

Examine bond markets, futures delivery mechanisms, and interest rate derivatives to implement duration-based hedging strategies.

What's included

8 videos5 assignments

8 videosTotal 50 minutes

Contango and Backwardation3 minutes
Example of Investment Assets5 minutes
Day Count Convention7 minutes
T Bonds Quotation8 minutes
T Bonds Futures5 minutes
CTD(Cheapest to Delivery10 minutes
Eurodollar Futures5 minutes
Duration Based Hedging8 minutes

5 assignmentsTotal 70 minutes

Market Conditions and Examples10 minutes
Bond Market Conventions10 minutes
Bond Futures and Delivery Options10 minutes
Interest Rate Futures and Hedging10 minutes
Graded - Fixed Income Derivatives and Hedging30 minutes

Evaluate swap structures and option pricing models to understand valuation, arbitrage relationships, and real-world applications.

What's included

12 videos5 assignments

12 videosTotal 65 minutes

Interest Rate Swaps Example6 minutes
Financial Intermediaries and Comparative Advantage6 minutes
Valuation of IRS9 minutes
Valuation of IRS using FRA8 minutes
Currency Swaps5 minutes
Other Types of Swaps4 minutes
Stock Options7 minutes
Upper Bounds and Lower6 minutes
Put Call Parity5 minutes
American Call and Put Options5 minutes
Stock Options Example1 minute
Impact of Dividends on Option Pricing Bounds4 minutes

5 assignmentsTotal 70 minutes

Swap Fundamentals10 minutes
Swap Valuation Techniques10 minutes
Types of Swaps and Options10 minutes
Option Pricing and Bounds10 minutes
Graded - What is the primary objective of an interest rate swap agreement?30 minutes

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Instructor

EDUCBA

1,533 Courses318,998 learners

Offered by

EDUCBA

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