Financial Markets

Introduction to Derivatives and Hedging: Part 3 of 3

This course describes the various types of swap and option contract arrangements/instruments that are available to market participants and discusses appropriate ways to use these derivative-based instruments to hedge exposed positions. Throughout the course, the unique characteristics of these arrangements/instruments are highlighted and explained, and their mechanics are exhibited in detailed examples and illustrations. Swap arrangements such as interest rate swaps, currency swaps, and credit default swaps, and the process for calculating swap settlement amounts, is reviewed. The course concludes with a detailed discussion of options trading and options markets, further examining put and call options and their uses, option payoff calculations, and options strategies including covered calls, spreads, and combinations.

Learning Objectives:

After completing this course, the course participant should be able to:

  • Identify the unique characteristics of swap agreements.
  • Recognize the differences between the various types of swaps.
  • Recognize appropriate hedging practices using swaps.
  • Identify the unique characteristics of option contracts.
  • Recognize the differences between option contracts and other types of derivative products.
  • Recognize appropriate hedging practices using option contracts.

Prerequisites/Advanced Preparation:

Knowledge of accounting and finance concepts, and basic derivatives terminology and mechanics

Speaker / Author:

Michael J. Walker
Mich'l J. Walker, CPA
Mich'l J. Walker is a New England-based Certified Public Accountant with over fourteen years of accounting experience in the financial services, information technology services and construction industries. He is currently a Vice President at one of the largest financial institutions in the world. He has an extensive technical accounting background that includes hands-on experience with U.S. GAAP, Canadian GAAP and International Financial Reporting Standards (IFRS). His expertise includes the accounting for derivatives, fixed income investments & securitizations. He graduated from Bentley University with a B.S. in Finance (1995) and a M.S. in Accountancy (2000).


Price (USD)

Standard: $49.90


Course Code : 99WAL03c-v2

Release Date : 03/24/2015
Expire Date : 03/31/2023
Credits :
CPE 2.00
QAS 2.00

Course Level : Basic
Course Type : New Standards
Length : 1hr 40min
Passing Grade : 70%
Field Of Study : Finance
Theme : Financial Markets

Format Type : eLearning

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