Course Category

• Utility theory
• The utility function
• Encoding a utility function
• Mean-variance criterion
• Risk-adjusted performance measures

Portfolio Mathematics

• Compute the mean, variance and standard deviation of past, and expected returns on an asset
• Explain the concepts of covariance and correlation
• Explain the concept of serial correlation
• Describe the behavior of normally distributed returns

Capital Allocation

• Portfolio Risk and Return
• Capital Allocation
• Optimal Portfolio
• Modern Portfolio Theory
• Performance Measurement

The CAPM and Multifactor Models

• Stock price return and volatility
• Capital asset pricing model
• The various methods of measuring equity risk
• The importance of diversification and its impact

Basics of Capital Structure

• Cost of Capital
• Capital Structure

The Term Structure of Interest Rates

• Concept of yield curve and its types
• Various theories under yield curve analysis
• Types of interest rates and their computation
• Fitting yield curve and applications of yield curve analysis

Valuing Futures and Forwards

• Forward contracts
• The mechanics of trading futures contracts
• Pricing of futures contracts

Principles of Option pricing

• The Black-Scholes model
• Put-call parity
• The Binomial model
• Interest-rate parity theorem
• Cash-and-carry model

Bonds

• Bonds and their characteristics
• Classification of debt instruments
• Bond market instruments

Bond Analysis

• Mechanics of pricing the bond
• Bond Yields
• Credit Spreads
• Duration and calculation of effective duration
• Convexity and calculation of convexity

Floating Rate Notes

• Floating rate notes
• Inverse Floater

Futures and Forwards

• Basics of futures and forwards
• Commodity futures
• Stock index futures
• Currency futures
• Short-term interest rate futures
• T-bond futures

Swaps

• The mechanism of a swap
• The motivation behind employing swaps
• The role of an intermediary in swap transactions
• The risks involved in employing swaps and also have an overview on the documentation procedures in swaps.

Options

• What options are
• The factors influencing option premium
• Greeks
• Option strategies

Credit Derivatives

• Total Return Swaps
• Credit Default Swaps
• Credit Spread Products
• Structured credit products
• Risk management requirements
• Protected Exposure

• Interest rate Cap and Floor
• Interest rate Collar
• Swaptions

Money Market

• Money market instruments
• Coupon bearing instruments
• Discount instruments
• Risks involved in the money market

Bond Markets

• Bond market, players and market characteristics
• Classification of debt instruments
• Bond market instruments

FX Market

• Spot Foreign Exchange Transactions
• Outright Forward Transactions and its uses
• Determination of Forward Rates
• Fx Swaps, options and futures

Stock Markets

• Equity securities
• Functions and Features of Equity Markets
• Classification of Equity Markets
• Equity Market Participants
• Equity Listing Process
• Trading Process
• Order
• Settlement
• Depository Receipts

Futures Market

• Concepts and terms used in futures contracts
• Mechanics of trading in the futures markets
• Trading strategies employed by futures traders
• How futures are used for hedging, speculation and arbitrage

Commodities Markets

• Types of commodities and commodity market
• Spot, cash and physical delivery contracts
• Oil and Natural gas markets
• Commodity forward contracts
• Commodity future contracts
• Commodity Options
• Commodity swaps

Capital Markets

• Capital Markets
• Funding and Investing
• Debt and Equity
• Factors Affecting Capital Markets

Power Markets

• Electricity markets
• Trading in electricity markets
• Pricing of electricity derivatives
• Forward curve for electricity
• Risk measurement methods

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