Training on Mastering Financial Products and Derivatives

Module 1: Introduction to Financial Products and Markets

• Overview of equities, fixed income, money markets, and foreign exchange markets
• Role and importance of derivatives in modern financial systems
• Understanding financial market interconnections and risk exposure
• Case Study: The role of derivatives in the 2008 financial crisis
• Practical: Identify financial instruments and their risk characteristics in a sample portfolio

Module 2: Futures and Forwards

• Mechanics of futures and forward contracts
• Pricing models, margining systems, and settlement processes
• Applications in hedging and speculative strategies
• Case Study: Hedging commodity price risk using futures contracts
• Practical: Structure a basic hedging strategy using futures or forwards

Module 3: Options and Option Strategies

• Call and put options, rights, obligations, and payoff structures
• Option pricing models including Black Scholes and binomial approaches
• Advanced strategies such as spreads, straddles, strangles, and collars
• Case Study: Use of equity options for portfolio protection
• Practical: Design an options strategy for risk management

Module 4: Swaps, Structured Products, and Risk Management

• Interest rate swaps, currency swaps, and credit default swaps
• Designing structured products for customized risk return profiles
• Measuring and managing derivative risks including delta, gamma, vega, and rho
• Value at Risk (VaR) and stress testing for derivatives portfolios
• Case Study: Interest rate swap strategies for corporate risk management
• Practical: Analyze risk exposure and propose a hedging solution using derivatives

Module 5: Regulation, Corporate Applications, and Hedging Strategies

• Regulatory frameworks including Basel III, Dodd Frank, EMIR, and MiFID II
• Derivatives in corporate finance, asset management, and hedge funds
• Hedging foreign exchange, commodity, and interest rate risks in real businesses
• Case Study: Airline industry fuel hedging strategies
• Practical: Develop a hedging strategy for a multinational corporation using derivatives