Introduction to financial derivatives

Introduction to financial derivatives


Introduction to financial derivatives

About this course

Despite the wide spread use of financial derivatives and the essential role that they play in managing various types of risks faced by individuals and institutions, financial derivatives remain a mystery to most people. The increasingly complex nature of derivatives means that at times even the people working at financial institutions that buy/sell derivatives struggle to deal with the valuation and risk management of financial derivative products. Most of the existing material and courses offered on financial derivatives either treat derivatives and their valuation as a mathematical exercise within academia or explain them at a very high level from a practitioner’s perspective. Treating the subject as an academic exercise in mathematics results in a disconnection from the real-world. Similarly, teaching derivatives at a very high level skips the theoretical foundation that is needed to fully understand and appreciate derivatives.

The aim of this course is to bridge this gap and introduce participants to financial derivatives and Quantitative finance theory that drives the valuation and risk management of derivative products. Whilst it is impossible to give an exhaustive overview of Quantitative finance, this day-course aims to convey the fundamental concepts of of Quantitative finance and how the mathematical models are used for the valuation and risk management of derivative products.

Learning Objectives

The course will be divided into three parts: In the first part, participants will learn the fundamental concepts of Quantitative finance.  In the second part, the participants will learn about the types of derivative products and how they are used to manage various types of risks. The final part will focus on risk management. Participants will learn about various types of risks associated with derivative products and how to manage them. This part will bring together the material covered in the first two parts and the participants will learn how the theory of Quantitative finance drives and valuation and risk management of derivatives.

Target Audience

The course is aimed at any one who has an interest in financial derivatives and wants to develop an understanding of derivative products. Whilst no previous knowledge of derivative products is required, the participants are expected to posses basic analytical skills needed to understand the material covered during the course.

Course Outline

  • Introduction: The motivation for using derivatives
  • Quantitative finance: Fundamental concepts
  • Classification: Key classes of financial derivatives
    • Forwards and futures
    • Options
    • Swaps
  • Valuation of derivatives
  • Introduction to Risk
    • Credit Risk
    • Market Risk
  • Risk Management
    • Greeks
    • VaR

Course Dates

Next course date is Saturday, 8 April, 2017. Location: London

Please use the link below to book a place on the course. Once booked, course details along with the location will be emailed to you. Please note that we require a minimum number of people to book the course. If the minimum number of people do not register, we reserve the right to cancel or reschedule the course. In such a situation, you have the option to either have a full refund, or attent the course on an alternative date.