Introduction into Derivatives

Derivative contracts are among the most common and actively traded financial instruments in the world. They are

used to hedge financial risks and for speculation in financial markets. Futures and options are exchange-traded

derivatives, while forwards, swaps and options are over-the-counter (OTC) derivatives. Derivatives markets have

attracted particular attention since the financial crisis of 2007-2008., when the number of defaults, including on

derivative contracts, led to the bankruptcy of several major financial institutions. The course gives a basic understanding of such derivative contracts as forwards, futures, options, swaps

To provide the audience the understanding of the essence of the derivative contact, types of derivatives, main

differences between exchange-traded derivatives and OTC derivatives, features of forwards, futures, options, swaps,

Basics of derivatives; Forwards; Futures; Options; Swap