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Introduction to Derivatives |
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What are derivatives? |
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Derivative building blocks: forwards and futures, swaps, and options |
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Derivatives as a hedging tool |
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Derivatives as a speculative tool |
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Derivatives as a structuring tool |
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Derivatives across markets – FX, equities, rates, commodities, and credit |
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Forward Markets |
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Why is there a need for forward contracts? |
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Principles of forward pricing |
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The FX forward market |
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Using FX forwards to avoid currency risk |
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Financial Futures |
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Definitions and terminology |
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How futures differ from OTC products |
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Standardisation of contracts |
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Overview of interest-rate, bond, stock-index, and currency contracts |
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Physical delivery vs. cash settlement |
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How margining systems work |
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A brief insight into cash and carry pricing |
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Using bond and stock index futures for tactical asset allocation |
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Interest Rate, Currency, and Equity Swaps |
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The concept of a swap |
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Definitions and terminology |
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Interest rate swaps |
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Currency swaps |
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Equity swaps |
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Central counterparties |
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Swap execution facilities (SEFs) |
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Swap applications |
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Fixing investment returns |
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