Advance Derivatives
Unit 1: Greeks
Option Greeks
Understanding the Basics Imagine you've bought an option contract. This contract gives you the ri...
Summary
1. Delta (Δ) – Measures Price Sensitivity What it tells you: Delta shows how much the option pri...
Formula sheet
Summary of Correct Formulas: Delta (Δ): Measures sensitivity to price changes. Thet...
Numerical example
Let's work through a complete numerical example for each Greek (Delta, Theta, Gamma, Vega, and Rh...
Relationship and Comparison Among Stock Greeks
The Greeks aren't independent; they dance together! Understanding their relationships is key to ...
Delta Hedging and Gamma Hedging
Managing Your Option Risks Delta hedging and Gamma hedging are strategies to reduce the risk of y...
Making a Portfolio Delta Neutral
The Art of Balance Creating a Delta-neutral portfolio is like balancing a seesaw. You want to pos...
Gamma Neutral
Shielding Your Portfolio from Delta's Mood Swings Gamma neutrality takes risk management a step f...
Delta Positive Gamma Neutral
A Specific Portfolio Configuration A "Delta Positive, Gamma Neutral" portfolio is a specific type...
Gamma Positive Delta Neutral
Profiting from Big Swings, Regardless of Direction A "Gamma Positive, Delta Neutral" portfolio is...
Unit 2: Swaps & Interest Rate Futures
Introduction to Swaps
Exchanging Cash Flows A swap is a derivative contract where two parties agree to exchange cash fl...
Understanding Credit Default Swaps (CDS)
Insurance Against Default A Credit Default Swap (CDS) is essentially an insurance policy against ...
CDS: Forwards and Options
Extending the CDS Toolkit While a standard Credit Default Swap (CDS) provides ongoing protection ...
Interest Rate Derivatives
Futures, Caps, Floors, and FRAs This topic covers several instruments used to manage interest rat...
Unit 3: Exotic Options
Early Exercise Options
Nonstandard American Options: What it is: American options grant the holder the right to exerci...
Payoff-Modifying Options
Tailoring the Payout Structure These exotic options alter the standard call or put option payoff ...
Path-Dependent Options
The Journey Matters These exotic options have payoffs that depend not only on the underlying asse...
Multi-Asset Options
Diversifying the Underlying These exotic options have payoffs that depend on the performance of m...
Structured Options
Customized Payoff Profiles These exotic options are often built from combinations of standard opt...
Options on Options
Second-Order Derivatives These exotic options have, as their underlying asset, another option con...
Barrier Options
Triggering Payoffs with Price Levels Barrier options are options whose existence and/or payoff de...
Unit 4: Cryptocurrencies
Introduction to Cryptography & Cryptocurrencies
Securing Digital Assets This topic provides a foundational understanding of the technologies behi...
Introduction to Major Cryptocurrencies
BTC, ETH, EOS, LTC, BCH, XRP This topic introduces six prominent cryptocurrencies, highlighting t...
Cryptocurrency Futures Contract Specifications
Standardizing Derivatives This topic outlines the typical specifications for futures contracts ba...
Understanding Cryptocurrency Pairs with USDT
The Role of Stablecoins This topic explains the significance of trading cryptocurrencies against ...
SWAP Contract of BTC & ETH
Exchanging Exposure This topic explains the concept of a SWAP contract involving Bitcoin (BTC) an...
Introduction and Calculation of BTC & ETH Options
Pricing Volatility This topic introduces options contracts based on Bitcoin (BTC) and Ethereum (E...