Derivative Finance: Explained play online

Derivatives are considered one of the most complex Financial Instruments and it is becoming increasingly popular in the world of finance.

Those who work in finance, need to understand how derivatives work, how they are used and how they are priced. So, here we decode it for you.

Topics Covered :-

1) Introduction to Derivative.

2) Market Participants in Derivative :-
Hedgers
Speculators
Arbitrageurs

3) Futures and Forward Contract

4) Margin on Futures Contract
Initial Margin
The Maintenance Margin
The Variation Margin or Mark-To-Market Margin

5) Futures Contract Pricing
The Cost of Carry Model
The Expectancy Model
Futures Basis

6) Option Introduction

7) Option Styles :
American Option
European Option

8) Option Moneyness
In-The-Money
At-The-Money
Out-Of-The-Money

9) Types of Options:-
Call Option
Put Option

10) Options Pricing
Intrinsic value
Time value

11) Swap Introduction and types:-
Interest Rate Swap
Total Return Swap
Credit Default Swap
Currency Swap
Commodity Swap

Reference:
Investopedia
Kotaksecurities
Financial Derivatives: Theory, Concepts and Problems by S. L. GUPTA
Options, Futures and Other Derivatives by John C. Hull