🌟 97% H1 Achiever! 🚀 FNCE30007 Sem 1, 2022 Notes: Derivative Securities

Description

Unlock Derivatives Mastery with These Comprehensive and Example-Rich Lecture Notes! Welcome to the ultimate guide for conquering derivatives like a pro! 🚀 These notes are your secret weapon, filled with real-life case studies, practical examples, and powerful formulas to make you a derivatives superstar! TABLE OF CONTENTS: 1. Case Studies: MG, Gold Hedging, Nickel Market, Trading Places 🌟 2. Set 1: Overview and Futures - Uses for Derivatives - Long and Short Positions Terminology - Futures and Forwards - Forward vs. Futures Prices - Margin (Marking to Market) - Handy Formulas 3. Set 2: Hedging using Futures and Forwards - Hedging Strategies - Must-Know Formulas 4. Set 3: Determination of Forward and Futures Prices and their Relation with Spot Prices 1 - Key Assumptions for Pricing - Essential Formulas 5. Set 4: Determination of Forward and Futures Prices and their Relation with Spot Prices 2 - Exploring Futures and Forward Curves - Understanding Slope of Curve and Future Returns - The Relation between Futures Prices & Expected Spot Prices 6. Set 5: Options Market - All About Options - Option Valuation Techniques - Optimal Exercise and Arbitrage Bounds for American Options - Must-Have Formulas 7. Set 6: Options Trading Strategies - Mastering Option Trading Strategies - Bull Spreads, Bear Spreads, Box Spread, Butterfly Spread, Reverse Butterfly Spread, Calendar Spread, Straddle, Strangle, Strip, Strap—Oh My! 8. Set 7: Binomial Pricing Model - Navigating Binomial Trees - A Real Call Option Example with a Riskless Portfolio - Handy Formulas 9. Set 8: Black Scholes Model - Understanding the Assumptions - The Magical Lognormal Property - Handling Volatility and VIX Index - Including Dividends in BSM - Valuing European Currency Options with BSM - Stock Index Options & Valuation with BSM - American Options and BSM Model - Binomial vs. BSM: The Showdown - Essential Formulas 10. Set 9: The Greeks - Hedging Options Positions - Leveraging the Greeks for Hedging: Delta, Gamma, Theta, Vega, Rho - Formula Sheet for Quick Reference These notes are your golden ticket to derivatives success! From fundamentals to advanced strategies, we've got your back. Plus, guess what? With these notes, I aced the subject and scored an impressive 97% in my final grade!