Financial Markets

Introduction to Derivatives and Hedging: Part 2 of 3

Course Overview:

This course focuses on two specific types of derivative instruments: forward contracts and futures contracts. The course begins with an overview of forward contracts and a description of the unique characteristics of those contracts. Hedging practices through the use of forward contracts is reviewed, and the calculation of a forward contract's payoff is exhibited with examples and illustrations. Forward pricing is discussed and foreign exchange forwards and forward rate agreements are further defined and explained. The course concludes with a detailed review of futures contracts, and the subcomponents of futures markets, including futures exchanges, standardization features of futures contracts, market mechanics, the concept and use of futures margin and margin requirements, and the futures exchange clearinghouse, through which futures trades are cleared.

Learning Objectives:

After completing this course, the course participant should be able to:
  • Identify the unique characteristics of forward contracts.
  • Recognize appropriate hedging practices using forward contracts.
  • Identify the differences between futures and forwards.
  • Recognize the financial and operational risks associated with using futures contracts as hedging tools.

  • 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 : 99WAL03b-v2

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

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

    Theme : Financial Markets

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