Study Chapters

Navigate through all 9 chapters covering instruments, pricing, and applications.

Chapter 1

Derivative Instruments and Features

Introduction to derivatives, types of contracts, and market structures.

Forwards Futures Options Swaps
Chapter 2

Forward Commitments & Contingent Claims

A deep dive into forward contracts, futures mechanics, and swap structures.

Payoffs Settlement Margin Credit Risk
Chapter 3

Derivative Benefits, Risks, and Uses

Analysis of derivative benefits, risk management, and operational advantages.

Risk Management Hedging Leverage Liquidity
Chapter 4

Arbitrage, Replication, and Cost of Carry

Master arbitrage principles, replication strategies, and pricing models.

Arbitrage Replication Cost of Carry FX Forwards
Chapter 5

Pricing & Valuation of Forward Contracts

Learn the distinction between pricing and valuation, plus FRAs.

FRAs Valuation Spot & Forward Rates
Chapter 6

Pricing & Valuation of Futures Contracts

Understand mark-to-market mechanics and interest rate futures.

MTM Clearinghouse Interest Rate Futures
Chapter 7

Pricing & Valuation of Swaps

Explore interest rate swaps, bond replication, and settlement calculations.

Interest Rate Swaps Swap Rates Replication
Chapter 8

Pricing & Valuation of Options

Master option components like exercise value, time value, and moneyness.

Intrinsic Value Time Value Moneyness Greeks
Chapter 9

Option Replication Using Put-Call Parity

Learn put-call parity relationships, synthetic positions, and protective puts.

Put-Call Parity Synthetics Protective Put