Financial Derivatives: Managing Risk with Options, Futures, and Swaps
Financial derivatives are complex financial instruments whose value is derived from underlying assets, such as stocks, bonds, commodities, or currencies. Learn about the different types of derivatives, including options (call and put), futures, forwards, and swaps. Understand how derivatives are used for hedging (risk management), speculation (profit generation), and arbitrage (exploiting price differences). Explore the structure and pricing of derivatives, including option pricing models (Black-Scholes), futures margin requirements, and interest rate swaps.