Introduction to Derivatives

Derivatives, by certain measures, are multiple times of the world’s GDP. Clearly, irrespective of our professions, we can’t ignore them since their influence is multifaceted and at times, directly or indirectly, they affect our regular and seemingly mundane financial decisions. This elementary course provides an introduction to derivatives.

You will not only learn the meaning and types of derivatives but also some interesting jargon used in this field. You will understand why and how derivatives have evolved to their present state. You will see exactly how large the industry is and why it influences every area of our life even though we might not be aware of it. After completing this course, you will learn some basic principles and concepts used in the pricing and valuation of various derivative instruments.

After completing this course, you will be able to: –

• Understand how derivatives are more efficient than insurance to mitigate risks.
• Describe the meaning of derivative instruments.
• Learn, briefly, the different types of derivative instruments.
• Explain several terms related to the derivatives industry.
• Understand how derivatives have proven to be an effective tool in alleviating risks.
• Experience how derivatives have evolved over time.
• Learn the size and scope of derivative instruments.
• Recognize the role derivatives play in an economy.
• Understand why exactly these instruments are criticized.
• Learn about risk preference of investors.
• State the “Law Of One Price” and its practical implications.
• Recognize how arbitrage helps keep the law of one price intact.
• Explain why derivatives mathematical results need tweaking as per risk preferences.
• Understand the meaning of a forward and how it emerged as the earliest derivative.
• Describe, in detail, various features of a forward contract.
• Learn about forward contracts on equity, interest rates, currencies and commodities.

Eligibility – Anyone who has passed 10+2 or an equivalent exam or is currently pursuing undergraduate studies in any field.

Pre-requisites – No specific pre-requisites required for this course. We recommend completing our course “Introduction to Finance”.

Suitability

This course is most suitable for: –

• Students from any background and discipline
• Working professionals with very little knowledge of finance
• Budding entrepreneurs needing a quick refresher
• Fresh graduates from any branch or stream
• Anyone with no knowledge of but keen interest in finance

This is a free course. As a result, no payment is required.

You may directly enroll by clicking either the “Enroll” button or the “Login to Enroll” button.