Introduction to Derivatives

Introduction to Derivatives

1. Ch4. Forwards and Futures

   • Forward Contracts
   • The OTC Market for Trading Forwards
   • Futures Contracts
   • Exchange Trading of a Futures Contract
     • Order Placement
     • Daily Settlement
     • Marking-to-market
     • Closing the contract
     • Open Interest
     • Trading Volume
   • Hedging with Forwards and Futures

2. Ch5. Options

   • Call Options
   • Put Options
   • Exchange-Traded Options
   • Longs and Shorts in Different Markets
   • Order Placement Strategies

3. Ch8. Forward and Futures Market

   • Applications and Uses of Forwards and Futures
   • A Brief History of Forwards and Futures
   • Futures Contract Features and Price Quotes
   • Commodity Price Indexes

4. Ch9. Futures Trading

   • Brokers, Dealers, and the Futures Industry
   • Floor Trading of Futures Contracts
   • Entering and Ending a Futures Position
   • Margin Accounts and Daily Settlement
   • Futures and Forward Price Relations
   • Trading Spread

5. Ch10. Futures Regulations

   • Which Markets have Futures?
   • Regulation of US Futures Markets
   • Manipulation in Futures Markets
   • Managing Commodity Markets