Financial Markets and Derivatives Fundamentals
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Financial Markets and Derivatives Fundamentals
This course is part of Financial Risk and Quantitative Finance Specialization
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What you'll learn
Analyze financial markets and derivatives including forwards, futures, options, and swaps.
Apply pricing models, arbitrage concepts, and hedging strategies in financial scenarios.
Evaluate interest rate risk, yield curves, and risk management techniques for decision-making.
Details to know
June 2026
35 assignments
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There are 7 modules in this course
Master financial markets, derivatives, and risk management with this complete FRM-aligned course.
Learn how futures, options, swaps, and pricing models work in real-world finance. This course is designed to help learners build a strong conceptual and practical foundation in financial markets and products. Starting from core market concepts, it progresses into derivatives pricing, arbitrage strategies, and advanced risk management techniques. You will explore how financial instruments like forwards, futures, options, and swaps are used to manage risk and generate returns. The course also covers interest rate dynamics, yield curves, duration, and hedging strategies used by professionals. With a structured approach combining theory and application, this course enables you to analyze financial scenarios, evaluate pricing models, and apply hedging strategies effectively. Ideal for FRM aspirants, finance students, and professionals, this course equips you with the skills needed for risk analysis, trading, and financial decision-making.
Build a strong foundation by understanding financial markets, derivative instruments, and payoff structures, enabling learners to interpret how risk is transferred and managed.
What's included
8 videos5 assignments
8 videos•Total 60 minutes
- Derivative Markets•7 minutes
- Introduction to Financial Markets and Products•11 minutes
- Forward Contract•9 minutes
- Futures and Options•11 minutes
- Futures and Options Continues•6 minutes
- Payoff From Option and Forward•5 minutes
- Hedging•3 minutes
- Hedging Using Forwards•8 minutes
5 assignments•Total 70 minutes
- Introduction to Financial Markets•10 minutes
- Basics of Derivative Contracts•10 minutes
- Understanding Options and Payoffs•10 minutes
- Introduction to Hedging Concepts•10 minutes
- Graded - Foundations of Financial Markets•30 minutes
Explore hedging, speculation, arbitrage, and market infrastructure to understand how participants interact and how markets maintain efficiency.
What's included
8 videos5 assignments
8 videos•Total 50 minutes
- Hedging Using Options•5 minutes
- Speculation•9 minutes
- Arbitrage•2 minutes
- Futures market•7 minutes
- Margin•6 minutes
- Understanding Clearinghouse•7 minutes
- Regulatory Framework•6 minutes
- Hedging Strategies Using Futures•8 minutes
5 assignments•Total 70 minutes
- Hedging and Risk Reduction•10 minutes
- Arbitrage and Market Efficiency•10 minutes
- Market Infrastructure and Margins•10 minutes
- Regulation and Futures Hedging•10 minutes
- Graded - Market Participants and Trading Strategies•30 minutes
Analyze basis risk, index hedging, and rolling strategies to evaluate real-world hedging effectiveness and portfolio risk management.
What's included
8 videos5 assignments
8 videos•Total 52 minutes
- Basis Risk•6 minutes
- Sources of Basis Risk•8 minutes
- Hedging with Stocks Index Futures•4 minutes
- Tailing the Hedge•7 minutes
- Rolling Hedge Forward•5 minutes
- Working on Example•8 minutes
- Interest Rates•8 minutes
- Compounding•6 minutes
5 assignments•Total 70 minutes
- Understanding Basis Risk•10 minutes
- Index-Based Hedging•10 minutes
- Rolling and Practical Hedging•10 minutes
- Introduction to Interest Rate Markets•10 minutes
- Graded - Advanced Hedging and Risk Concepts•30 minutes
Understand time value of money, yield curve construction, and duration-based risk measurement to assess interest rate sensitivity.
What's included
8 videos5 assignments
8 videos•Total 55 minutes
- Compounding Continues•4 minutes
- Spot Rates•7 minutes
- Bootstrapping•6 minutes
- Forward Rate•9 minutes
- Duration•11 minutes
- Concept of Duration•7 minutes
- Modified Duration and Convexity•6 minutes
- Theories of Term Structure•5 minutes
5 assignments•Total 70 minutes
- Compounding and Rate Structures•10 minutes
- Yield Curve Construction•10 minutes
- Duration and Risk Measurement•10 minutes
- Advanced Duration Concepts•10 minutes
- Graded - Time Value of Money and Yield Concepts•30 minutes
Apply pricing models for forwards and futures, including cost of carry, arbitrage, and advanced pricing adjustments for income and market conditions.
What's included
8 videos5 assignments
8 videos•Total 62 minutes
- Investment and Consumption Assets•6 minutes
- Forward Price for an Investment Asset•12 minutes
- Valuing forward Contracts•3 minutes
- Currency and Commodity Futures•10 minutes
- Short Selling•7 minutes
- Forward Pricing and Known Income•11 minutes
- Currency and Commodity Features•6 minutes
- Delivery Options•7 minutes
5 assignments•Total 70 minutes
- Asset Types and Pricing Basics•10 minutes
- Forward Valuation Techniques•10 minutes
- Advanced Pricing Considerations•10 minutes
- Market Features and Delivery•10 minutes
- Graded - Pricing and Valuation of Forwards & Futures•30 minutes
Examine bond markets, futures delivery mechanisms, and interest rate derivatives to implement duration-based hedging strategies.
What's included
8 videos5 assignments
8 videos•Total 50 minutes
- Contango and Backwardation•3 minutes
- Example of Investment Assets•5 minutes
- Day Count Convention•7 minutes
- T Bonds Quotation•8 minutes
- T Bonds Futures•5 minutes
- CTD(Cheapest to Delivery•10 minutes
- Eurodollar Futures•5 minutes
- Duration Based Hedging•8 minutes
5 assignments•Total 70 minutes
- Market Conditions and Examples•10 minutes
- Bond Market Conventions•10 minutes
- Bond Futures and Delivery Options•10 minutes
- Interest Rate Futures and Hedging•10 minutes
- Graded - Fixed Income Derivatives and Hedging•30 minutes
Evaluate swap structures and option pricing models to understand valuation, arbitrage relationships, and real-world applications.
What's included
12 videos5 assignments
12 videos•Total 65 minutes
- Interest Rate Swaps Example•6 minutes
- Financial Intermediaries and Comparative Advantage•6 minutes
- Valuation of IRS•9 minutes
- Valuation of IRS using FRA•8 minutes
- Currency Swaps•5 minutes
- Other Types of Swaps•4 minutes
- Stock Options•7 minutes
- Upper Bounds and Lower•6 minutes
- Put Call Parity•5 minutes
- American Call and Put Options•5 minutes
- Stock Options Example•1 minute
- Impact of Dividends on Option Pricing Bounds•4 minutes
5 assignments•Total 70 minutes
- Swap Fundamentals•10 minutes
- Swap Valuation Techniques•10 minutes
- Types of Swaps and Options•10 minutes
- Option Pricing and Bounds•10 minutes
- Graded - What is the primary objective of an interest rate swap agreement?•30 minutes
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