Derivative Products I

Students explore the fundamental characteristics, features, and applications of derivative products. Particular attention is paid to options pricing and the examination of the Black-Scholes and Binomial models.

"A thorough course with a good instructor."

"The instructor was able to break down complex concepts into everyday scenarios."

"This course utilized good examples to demonstrate course topics."

Target Audience

Traders, sales and business development professionals, back office staff, financial analysts, auditors and compliance staff.

Learning Objectives

After completing this module, you'll be able to:

  • Identify who the market participants are that presently use derivative products.
  • Identify what markets are derivative products (futures, options and swaps) and on what underlying assets these derivatives are based.
  • Explain how these various market participants use derivative products and for what purpose.
  • Demonstrate how to price futures contracts.

Course Syllabus

Futures and Forwards

  • Evolution and History
  • Standardized Contracts
  • Margin and Daily Settlement
  • Clearing Firms and Their Function
  • Benefits Of Exchange-Traded Futures
  • Applications Of Futures And Forwards
  • Differences Between Futures & Forwards
  • Time Value of Money

Eurodollar Futures

  • Contract Specifications
  • The Eurodollar Strip
  • Value of a Basis Point – Futures versus Deposits


Eurodollar Contract

  • Define an FRA
  • How they are priced
  • Applications of FRA

Interest Rate Swaps

  • History and Evolution
  • Characteristics and Terms of Swaps
  • Fundamentals Of Pricing Swaps
  • Applications of Interest Rate Swaps


Options, Caps, Floors & Swaptions

  • History and Evolution Of Options Market
  • Option Terminology
  • Risk/Reward - Payoff Profiles & Breakevens
  • Basic Characteristics Of Option Contracts
  • Basic Characteristics Of Caps & Floors
  • Basic Characteristics Of Swaptions
  • Factors Of Options Pricing



New York - Soho

 Wed 1 Oct 2014-Wed 1 Oct 2014
     9:00 - 4:30

Instructor(s) : Mccabe Hurley


Professional Credits:
CPE Credits 7
$1,279 USD
Duration 1 Day
Advance Preparation
No advance preparation required.
Fundamentals of the Securities Industry or equivalent knowledge, 2 - 3 years financial markets experience working for a bank or brokerage firm who is currently in the derivatives business. You will need a financial calculator with the following specific functions: 1.) The e(x) (the Exponent e) function; 2) The Ln (the Natural Logarithm) function
Instructional Method