Derivatives, Hedging & Structured Products
F2 Forwards and Futures
The first family. Obligation on both sides, and everything standardisation changed.
- CompareView comparisonTopic 01
Spot Price
Topic 02Forward Price: What the Gap Is Made Of
- CompareView comparisonTopic 01
Forward
Topic 02Futures: Same Payoff, Different Plumbing
- CompareView comparisonTopic 01
Basis
Topic 02Basis Risk: The Gap and Not Knowing the Gap
- CompareView comparisonTopic 01
Hedge Ratio
Topic 02Hedge Effectiveness: Set It, Measure It
F3 Options
The second family. A right on one side, an obligation on the other.
- CompareView comparisonTopic 01
Option Buyer and Option Writer: Where the Choice Sits
- CompareView comparisonTopic 01
Collar and Protective Put: Two Different Obligations
- CompareView comparisonTopic 01
Call and Put Options: Two Rights, Opposite Directions
- CompareView comparisonTopic 01
Intrinsic Value and Time Value: One Number, Two Parts
F4 Option Strategies and Payoffs
Combining legs. Spreads, the covered call, the iron condor, and the payoff shape.
- CompareView comparisonTopic 01
Vertical and Calendar Spreads: What Varies Between Legs
- CompareView comparisonTopic 01
Straddle and Strangle: One Level Against Two Levels
F5 Volatility and the Greeks
What actually prices an option. Implied volatility, the surface and the Greeks.
- CompareView comparisonTopic 01
Implied Volatility
Topic 02Historical Volatility: What Each Needs
F6 Swaps and Rate Derivatives
Rate derivatives. The most traded contract in the world, and the conventions beneath it.
- CompareView comparisonTopic 01
Swap Rate and Forward Rate: What Each One Covers Ahead
- CompareView comparisonTopic 01
Interest Rate Swap and Currency Swap: What Actually Moves
- CompareView comparisonTopic 01
Derivative and Underlying: One Can Be Held, One Cannot
- CompareView comparisonTopic 01
Exchange Traded and Over the Counter: Who Is Opposite You
- CompareView comparisonTopic 01
Fixed Leg and Floating Leg: What Each One Knows When
F7 Hedging Application
The application. An exposure that already exists, and the instrument that offsets part of it.
- CompareView comparisonTopic 01
Hedge or Speculation: What Existed Before the Trade
- CompareView comparisonTopic 01
Hedge Risk or Counterparty Risk: Two Different Gaps
F8 Structured Products
Packaging. Derivatives wrapped into something sold as an instrument.
- CompareView comparisonTopic 01
Structured Product and Mutual Fund: Who Owes the Holder
- CompareView comparisonTopic 01
Principal Protection and Capital Guarantee: Two Labels
F9 Clearing, Margin and Settlement
The plumbing. Margin, netting, settlement, position limits and surveillance.
- CompareView comparisonTopic 01
Netting and Settlement: Working It Out and Ending It
- CompareView comparisonTopic 01
Position Limits and Margin: Two Different Constraints
F10 Derivatives Discipline and Cases
The boundary layer. Writing about derivatives without producing a trade instruction.
- CompareView comparisonTopic 01
Post-Mortem and Performance Marketing, Side by Side
- CompareView comparisonTopic 01
Market Observation and Trade Signal: Where the Line Is
- CompareView comparisonTopic 01
Scenario Analysis and Forecast: What Separates Them