Derivatives, Hedging & Financial Risk Management is a structured track of 13 lessons that build a complete, interview-ready understanding of the topic. Work through them in order, then use the quiz and flashcards in each lesson to revise.
What this course covers
- Why Derivatives Exist: Hedging, Speculation & Arbitrage - The three uses of derivatives, and who is doing which in a given market.
- Forwards & Futures: Pricing, Margins & Daily Settlement - Forward pricing, futures margining and mark-to-market, compared directly.
- Options From Scratch: Calls, Puts, Payoff Diagrams & Moneyness - Calls and puts built from payoff diagrams, with intrinsic and time value separated.
- Option Pricing Intuition Without the Mathematics - What the standard pricing model is really saying, and which inputs move price most.
- Option Sensitivities: Delta, Gamma, Theta, Vega & Rho in Plain English - Each sensitivity explained, with the practical use a trader makes of it.
- Option Strategies and the Exact Situation Each One Fits - Covered calls, spreads, straddles and collars, each matched to a market view.
- Swaps: Interest Rate, Currency & Cross-Currency Structures - How swaps are structured and priced, and the corporate problems they solve.
- Corporate Hedging Policy: Currency, Commodity & Interest Rate Exposure - Writing a hedging policy: exposure, hedge ratio, instruments and accounting.
- Market Risk: Value at Risk, Expected Shortfall & Stress Testing - Value at risk and its limits, expected shortfall, and designing stress scenarios.
- Credit Risk, Counterparty Risk & Collateral Management - Counterparty exposure, netting, collateral and central clearing.
- Liquidity Risk, Asset-Liability Management & Fatal Mismatches - How funding and duration mismatches sink institutions, and how they are managed.
- Operational Risk, Model Risk & Conduct Risk Explained - The non-financial risks, with real failure examples and the controls that address them.
- The Indian Derivatives Market: Structure, Regulation & Retail Reality - How India's derivatives market is structured and regulated, and what the data shows.