Forwards & Futures - Online

This curriculum expands on the introductory information provided in Derivative Instruments to present a more in–depth look at forwards and futures. It explores the definitions, pricing and applications of the different types of contracts, including forward rate agreements (FRAs), short–term interest rate futures, bond and note futures, and stock index futures. The curriculum also explains the different types of risk associated with forwards and futures.

Please note that this is a curriculum of individual course modules. You will need to pass each module exam in order to qualify for a certificate of completion.

This is an asynchronous eLearning program that can be accessed 24/7 from any internet enabled computer.

Available TodayOnlineUSD$325
Instructional Method:
Self-Study
Level: Intermediate

CPE CREDITS
6
Traders, sales professionals, back office professionals, financial analysts, cash/money managers, auditors, compliance professionals, financial and bank officers, accountants and regulators.
Students will be able to:
  • Identify the similarities between forwards and futures.
  • Recognize the components of the forward price.
  • List the credit risks involved in forwards and futures transactions.
  • Identify the differences between forwards and futures.
  • Describe how interest accrues on forward rate agreements.
  • Identify key factors necessary to hedge with an FRA.
  • Identify the uses of FRAs in speculating.
  • Describe the forward curve and how it is constructed.
  • Identify short-term interest rate future specifications.
  • Recognize the different applications of short-term interest rate futures.
  • Describe what basis risk is and how it is determined
  • Recognize how strips are used to create synthetic futures rates and to price other derivative products
  • Identify the standard elements of note and bond futures
  • Define the function of the conversion factor
  • Describe how the cash and carry process determines bond futures pricing
  • Recognize the methods for identifying Cheapest To Deliver bonds
  • Identify the two measures of bond risk as they're related to hedging
  • Define the methods used to weight an index
  • Identify characteristics of stock index future contracts
  • Describe how to adjust the hedge ratio for beta.
  • Identify the risks associated with forwards and futures.
Derivative Instruments or equivalent level of knowledge
"The content of the training was useful and very clear."
"This is the first time in my long life that I have ever taken a course and test on line. I found it extremely user friendly, particularly for a novice such as myself."
"Very precise course - thanks!"
  • Derivative Instruments - Online
  • Options - Online
  • Risk Management Using Derivatives - Online
  • Swaps - Online
    • Introduction to Forwards and Futures
    Topics covered include:
    • Definitions of forwards and futures
    • Spot vs. forward delivery
    • Basics of pricing
    • Characteristics of forwards
    • Characteristics of futures
    • Margin
    • Cash settlement vs. physical delivery
    Duration: 1 hour

    Forward Rate Agreements (FRAs)
    Topics covered include:
    • Defining an forward rate agreement
    • Hedging with forward rate agreements
    • Speculating with forward rate agreements
    • How forward rate agreements are priced
    • How the forward curve is constructed
    Duration: 1 hour

    Short-Term Interest Rate Futures
    Topics covered include:
    • Characteristics of short-term interest rate futures
    • Quoting conventions: forward rate agreements vs. short-term interest rate futures
    • How futures are listed
    • Applications of short-term interest rate futures
    • Role of Eurodollar futures in pricing other products
    Duration: 1 hour

    Note and Bond Futures
    Topics covered include:
    • Contract specifications
    • Conversion factors and cheapest to deliver
    • Invoice amount and accrued interest
    • Pricing: cash and carry
    • Finding the cheapest to deliver
    • Hedging with bond and note futures
    Duration: 1 hour

    Stock Index Futures
    Topics covered include:
    • Underlying indices
    • Characteristics and specifications of stock index future contracts
    • Determining the fair futures price
    • Using stock index futures
    • Adjusting hedge ratio for beta
    Duration: 1 hour

    Risks of Forwards and Futures
    Topics covered include:
    • Risks common to forwards and futures
    • Risks specific to forwards
    • Risks specific to futures
    Duration: 1 hour

                                Powered by NYIF