Risk
Understanding Financial Forwards and Futures
Futures market mechanics, forward pricing, commodity derivatives, and arbitrage
4 CPD credits on completion
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Certificate on completion
Downloadable resources
Self-paced learning
About This Course
Course Information
This course provides deeper coverage of financial forwards and futures, including their pricing, and the determination of no-arbitrage values for commodity forwards and futures.
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 4 units of CPD. One unit is the equivalent of one hour of learning.
Course Sections
This course is made up of the following sections:
- Futures pricing (video)
- Futures pricing (quiz)
- Contract valuations (video)
- Contract valuations (quiz)
- Commodity forwards and futures (video)
- Commodity forwards and futures (quiz)
- Pricing forwards and futures (video)
- Pricing forwards and futures (quiz)
What You Will Learn
- Describe the mechanics of futures contracts, including margin requirements, marking to market, and settlement
- Calculate the no-arbitrage forward price for assets with no income, known income, and known dividend yield
- Apply cash-and-carry and reverse cash-and-carry arbitrage strategies to identify mispriced forwards
- Distinguish between investment assets and consumption assets in the context of forward pricing
- Explain how commodity forward prices are affected by storage costs, convenience yield, and lease rates
- Compare the pricing behaviour of agricultural, metal, and energy commodity futures
Who This Course Is For
- Finance professionals who deal with or manage exposure to futures and forward contracts
- Accountants who need to understand derivatives valuation and hedge accounting for forwards and futures
- Professionals building toward further study in risk management or FRM certification
Prerequisites
- A basic understanding of financial markets and the time value of money
- Familiarity with the concept of arbitrage is helpful but not required
Frequently Asked Questions
Course Details
CPD Credits4
CertificateYes
Pricing
Pricing
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CPD certificate on completion
Downloadable resources
Self-paced learning
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