Turbulent decades of economic crises and increased volatilities across all asset classes have brought about innovative and strategic derivatives solutions to manage financial risk and create value. Their failure has typically been due to a lack of understanding of how to use and price derivatives. Understanding derivatives’ dynamics, risks, valuations and uses has become more important than ever.
Although there is a plethora of derivatives structures, the key to understanding derivatives is that all financial products, no matter how complex, are portfolios of just two fundamental building blocks: a swap (forward) and an option. This course provides this understanding in a rigorous, consistent and coherent framework.