Financial Derivative - UQU

Introduction to Derivatives / What Is a Derivative? And Types of derivatives: Forward, Futures, Swaps, Options contracts. / The Uses of Derivatives / Over-the-counter markets vs Exchange-traded markets / Terminology of Derivatives (Buying, selling, end-user, market-maker and Short-Selling Financial Assets, etc..) / Transaction Costs and the Bid-Ask Spread 2 Forward contracts: / Financial Forwards Contract / Commodity Forwards Contract 3 Pricing forward contracts and prepaid forward contracts on stocks 4 Futures Contracts / Financial Futures Contract / Commodity Futures Contract 5 General Properties of Swaps contract 6 Options: Call and Put Option / Option Terminology / Payoff, Profit and diagram for a Purchased Call and Put option / Payoff, Profit and diagram for a Written Call and Put Option 7 Option strategies: / Basic Insurance Strategies: Insuring a Long Position: Floors ,Insuring a Short Position: Caps and Selling Insurance. / Put-Call Parity / Spreads and Collars: Bull and Bear Spreads, Box Spreads, Ratio Spreads, Collars / Speculating on Volatility: Straddles, Butterfly Spreads 8 Risk management