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Jack Farmer and Chris Thomas

This course begins with an overview of derivatives where we'll cover the global derivatives market players and understand the usage of derivatives.

We'll also cover treasury futures and understand margin and margin requirements in this course before moving on to a look at the characteristics and features of swaps.

We'll learn the fundamentals of pricing interest rate swaps and be able to apply interest rate swaps to hedging situations.

We'll wrap up this course with a review of various option terminologies and understanding of swaptions.

Read more

This course begins with an overview of derivatives where we'll cover the global derivatives market players and understand the usage of derivatives.

We'll also cover treasury futures and understand margin and margin requirements in this course before moving on to a look at the characteristics and features of swaps.

We'll learn the fundamentals of pricing interest rate swaps and be able to apply interest rate swaps to hedging situations.

We'll wrap up this course with a review of various option terminologies and understanding of swaptions.

This course is part 4 of the New York Institute of Finance's Capital Markets Professional Certificate.

What's inside

Learning objectives

  • Introduction to derivatives
  • Overview offutures and forwards
  • Introduction to swaps and options

Syllabus

M01: Introduction to Derivatives
M02:Futures and Forwards
M03:Swaps
M04:Options
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Good to know

Know what's good
, what to watch for
, and possible dealbreakers
Connects derivatives to their global market players and explores their practical usage
Teaches margin and margin requirements of treasury futures
Gives learners a foundation for pricing and applying interest rate swaps for hedging
Provides an overview of the many types of swaps, their characteristics, and their features
Introduces learners to swaptions and their uses
Provides resources in a format that is common to professional certificate programs

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Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Derivatives, Futures, Swaps, and Options with these activities:
Review different option terminologies
Options and swaptions are complex topics. Reviewing different terminologies will help you understand the concepts and prepare you for the course.
Browse courses on Swaptions
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  • Define key option terminologies, such as call, put, strike price, and expiration date
  • Explain the relationship between options and futures contracts
Learn about different types of swaps
Swaps are a complex but important topic in derivatives. Watching tutorials on different types of swaps will help you grasp the concepts.
Browse courses on Swaps
Show steps
  • Review different types of swaps, such as interest rate swaps, currency swaps, and commodity swaps
  • Explain the key features and benefits of each type of swap
  • Identify the different markets where swaps are traded
Calculate margin and margin requirements
Calculating margin and margin requirements are essential skills in derivatives markets. Practicing these calculations will improve your understanding.
Show steps
  • Calculate initial margin for a treasury futures contract
  • Calculate variation margin for a treasury futures contract
  • Explain the impact of margin calls on derivatives positions
One other activity
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Contribute to open source projects related to derivatives
If you wish to gain practical knowledge and experience with derivatives, contribute to open source projects in the field. This will allow you to apply your knowledge and to interact with other experienced professionals.
Show steps
  • Identify open source projects related to derivatives
  • Review the documentation and codebase of the chosen project
  • Identify areas where you can contribute your skills and knowledge
  • Make a pull request to the project
  • Review feedback and make necessary revisions

Career center

Learners who complete Derivatives, Futures, Swaps, and Options will develop knowledge and skills that may be useful to these careers:
Quantitative Analyst
Quantitative Analysts leverage mathematical and statistical techniques to model and analyze financial data. This course on Derivatives, Futures, Swaps, and Options will be valuable to you in this career because it will help build a foundation in the financial derivatives market.
Risk Manager
Risk Managers are responsible for identifying, assessing, and mitigating financial risks faced by an organization. This course includes an overview of derivatives, treasury futures, swaps, and options. Having this knowledge will be helpful as a Risk Manager.
Portfolio Manager
Portfolio Managers oversee the investment portfolios of individuals or organizations to achieve financial goals. This course will help you do this by providing an overview of derivatives, futures, forwards, swaps, and options.
Financial Analyst
Financial Analysts conduct financial research and make recommendations on investments. This course in Derivatives, Futures, Swaps, and Options will help you in this role by providing an overview of the global derivatives market players and the usage of derivatives.
Derivatives Trader
Derivatives Traders buy and sell financial derivatives contracts to speculate on price movements or to hedge against risk. As a Derivatives Trader, it will be helpful to understand the fundamentals of pricing interest rate swaps and be able to apply interest rate swaps to hedging situations.
Investment Banker
Investment Bankers help companies raise capital and provide financial advice. This course can provide a helpful overview of derivatives, futures, swaps, and options which are commonly used in the financial industry.
Hedge Fund Manager
Hedge Fund Managers manage investment funds that use advanced investment strategies to generate high returns. This course may be useful to you in this career as it provides an overview of derivatives, futures, forwards, swaps, and options.
Corporate Treasurer
Corporate Treasurers are responsible for managing the financial resources of a company. This course will help you do this by teaching the fundamentals of pricing interest rate swaps and how to apply interest rate swaps to hedging situations.
Financial Planner
Financial Planners provide individuals and families with financial advice and planning services. This course may be useful as it provides an overview of derivatives, futures, forwards, swaps, and options.
Actuary
Actuaries analyze financial data and use mathematical and statistical techniques to assess risks and make predictions. This course can help someone in this career by providing an overview of derivatives, futures, forwards, swaps, and options.
Insurance Underwriter
Insurance Underwriters assess risks and determine insurance premiums for individuals and businesses. This course can help in this job by providing a review of various option terminologies and understanding of swaptions.
Auditor
Auditors examine and evaluate financial records to ensure accuracy and compliance. This course will help you do this by providing an overview of derivatives, futures, forwards, swaps, and options.
Credit Analyst
Credit Analysts assess the creditworthiness of individuals and businesses to determine their ability to repay loans. This course may be useful as it provides an overview of derivatives, futures, forwards, swaps, and options.
Economist
Economists study economic trends and make predictions about the economy. This course may be useful as it provides an overview of derivatives, futures, forwards, swaps, and options.
Financial Consultant
Financial Consultants provide financial advice and planning services to individuals and businesses. This course provides an overview of derivatives, futures, swaps, and options which can be useful to a Financial Consultant.

Reading list

We've selected 13 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Derivatives, Futures, Swaps, and Options.
Widely used reference book on options, which covers the pricing of options as well as options trading strategies. It valuable companion to the course, particularly for learners who wish to pursue more advanced topics and techniques in options.
This comprehensive textbook covers a wide range of topics related to futures, options, and swaps, providing detailed explanations and practical examples. It valuable resource for learners seeking a thorough understanding of these instruments.
This practical guide provides a comprehensive overview of swaps, their applications, and risk management techniques. It valuable resource for professionals and learners seeking to gain a practical understanding of swaps.
This textbook provides a comprehensive overview of mathematical finance, covering a wide range of topics relevant to derivatives, such as stochastic calculus, option pricing, and risk management. It valuable resource for learners seeking a deep understanding of the mathematical underpinnings of derivatives.
Provides a comprehensive overview of the derivatives market, covering both theory and practice. It valuable reference for learners who seek a deeper understanding of the fundamental principles of derivatives.
This textbook covers a wide range of risk management topics, including the use of derivatives for hedging and speculation. It provides a comprehensive understanding of risk management principles and practices.
This handbook provides a comprehensive reference on fixed income securities, including derivatives used in this market. It valuable resource for learners seeking in-depth knowledge of fixed income instruments and their applications.
Combines theoretical concepts with practical Python implementations for derivatives analytics. It valuable resource for learners seeking to develop their programming skills in this domain.
This textbook provides a mathematical and economic foundation for understanding financial markets. It covers topics relevant to derivatives, such as probability, stochastic processes, and optimization.
Introduces the mathematical tools used in derivative pricing, including calculus, probability, and stochastic processes. It valuable resource for learners seeking to develop a strong mathematical foundation for derivatives.
Provides a rigorous treatment of the theory of interest, which underlies the pricing and valuation of many derivatives. It valuable resource for learners seeking a deep understanding of the mathematical foundations of derivatives.
This advanced textbook delves deeply into the mathematical and financial models underlying derivatives. While it may be challenging for some learners, it is an excellent resource for those seeking a more technical understanding of the subject matter.

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