Topic: Derivatives

Off-market Forward Contracts

As we know, a forward contract is a bilateral agreement between a buyer and seller to exchange a certain quantity and quality of an asset for a pre-determined price at a specified future date. A forward contract does not involve an exchange at the beginning of the...

Important Notations in Options Formulas

In the tutorial on risk management applications of options, we will look at how various options strategies can be used for managing risk in a company. Before we start let’s review the key notations used in options formulas: Time 0 refers to the time when an options...

Equity Swap Example

In an equity swap, two parties agree to exchange a set of future cash flows periodically for s specified period of time. Once leg of the equity swap is pegged to a floating rate such as LIBOR or is set as a fixed rate. The cash flows on the other leg are linked to the...

Swap Termination

A swap is an agreement between two parties where they agree to exchange the cash flows on different assets for a specified period of time. For example, in a vanilla interest rate swap, two parties agree to exchange the interest obligations on their loans. One party...
Option Greeks

Option Greeks

This video familiarizes traders with a set of Greek risk factors used to monitor a portfolio’s profile. It explains the five key greeks: Delta: The relative change in an option’s price for a given change in the underlying asset. Gamma: The rate of change...
Futures – Mechanics of Interest Rate Trading

Futures – Mechanics of Interest Rate Trading

This video is designed to help introduce investors to key factors surrounding monetary policy, the economy and how interest rates are set. Investors will learn about yield curves, what causes the curve to change shape and how expectations about the future price of...

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