Derivative Finance: Explained APK for Android

Derivatives are considered one of the most complex Financial Instruments and it is becoming increasingly popular in the world of finance.

Those who work in finance, need to understand how derivatives work, how they are used and how they are priced. So, here we decode it for you.

Topics Covered :-

1) Introduction to Derivative.

2) Market Participants in Derivative :-

Hedgers

Speculators

Arbitrageurs

3) Futures and Forward Contract

4) Margin on Futures Contract

Initial Margin

The Maintenance Margin

The Variation Margin or Mark-To-Market Margin

5) Futures Contract Pricing

The Cost of Carry Model

The Expectancy Model

Futures Basis

6) Option Introduction

7) Option Styles :

American Option

European Option

8) Option Moneyness

In-The-Money

At-The-Money

Out-Of-The-Money

9) Types of Options:-

Call Option

Put Option

10) Options Pricing

Intrinsic value

Time value

11) Swap Introduction and types:-

Interest Rate Swap

Total Return Swap

Credit Default Swap

Currency Swap

Commodity Swap

Reference:

Investopedia

Kotaksecurities

Financial Derivatives: Theory, Concepts and Problems by S. L. GUPTA

Options, Futures and Other Derivatives by John C. Hull