Derivative Markets & Instruments

Introduce material on various derivative instruments, such as futures, forwards, and swaps along with information about different derivative markets.

Introduction
Define a derivative and distinguish between exchange-traded and over-the-counter derivatives
Contrast forward commitments with contingent claims
Define forward contracts, futures, contracts, options (calls and puts), swaps...
Determine the value at expiration and profit from a long or a short position in a call or put option
Describe purposes of, and controversies related to derivative markets
Explain arbitrage and the role it plays in determining prices and promoting market efficiency
Important information
Quiz