Fundamentals of Financial Derivatives syllabus

Fundamentals of Financial Derivatives

• 1 Introduction (5 LHs)

  • Derivative Instruments, Markets, and Underlying Assets
  • Role and Criticisms of Derivative Markets
  • Career Opportunities
• 2 Structure of Derivative Market (6 LHs)

  • Development of Derivative Markets
  • Exchange-listed and OTC Trading
  • Trading, Clearing, and Settlement
  • Market Participants and Transaction Costs
• 3 Option Payoffs and Valuation (8 LHs)

  • Option Types, Styles, Payoffs, and Profits
  • Binomial Option Pricing
  • Black-Scholes-Merton Model
• 4 Forward and Futures (9 LHs)

  • Forward and Futures Pricing
  • Forward and Futures Contract Valuation
  • Stock Index Futures and Arbitrage
  • Options on Futures
  • Hedging and Margin Requirements
• 5 Swap Market (8 LHs)

  • Structure of Swap Markets
  • Interest Rate Swaps
  • Currency Swaps
  • Equity Swaps
• 6 Interest Rate Forward and Option (6 LHs)

  • Forward Rate Agreements
  • Interest Rate Options, Caps, and Floors
  • Swaptions and Forward Swaps
• 7 Derivative Markets and Its Regulation in Nepal (6 LHs)

  • Development and Economic Perspective of Derivative Markets
  • Exchange Instruments and Trading
  • Commodity Exchange Act and Regulation 2018
  • Use of Derivatives by Nepalese Commercial Banks