Derivatives Terminology Crash Course

About the Course

The course begins with descriptions of the various types of basic vanilla derivative products. Simple examples to illustrate each instrument, forward, futures and options, are presented. The similarities and differences between the instrument types are discussed.

Payoff profiles are reviewed next, beginning with a generic payoff profile first and then moving on to specific ones for forwards and call and put options. These three derivative products’ payoff profiles act as building blocks for synthetic configurations which are also presented.

Learning Objectives

After taking this course you will be able to:

• List the various categories of derivative instruments
• Define each type of derivative instrument and their features
• Compare the characteristics of each product category
• Construct and interpret the payoff profiles for forwards and options
• Construct payoff profiles for synthetic structures

Prerequisites

The candidate should be comfortable with basic mathematics, statistics, probability and EXCEL.

Target Audience

This course is for beginners in the finance field and is also aimed at banking, corporate, treasury and sales teams.