Mission
Build a structured foundation in financial derivatives, then progress through valuation, hedging, risk measurement, and practical market applications. Each course develops the concepts and quantitative skills needed for the next.
Become an expert in financial derivatives and risk management.
~16 hours · 5 courses
Course 1 · ~150 min
Explain how major derivative contracts work, identify their payoff structures, distinguish exchange-traded from over-the-counter products, and calculate basic contract gains and losses.
A clear understanding of derivative instruments and market structure is necessary before you can value them or use them for risk management.
Course 2 · ~180 min
Discount future cash flows, construct payoff diagrams, calculate present and expected values, and apply no-arbitrage reasoning to simple derivative pricing problems.
Pricing derivatives depends on translating uncertain future payoffs into present values using consistent mathematical and financial assumptions.
Course 3 · ~210 min
Price European options with a binomial model, interpret the inputs and outputs of the Black-Scholes framework, explain option Greeks, and value basic futures and swap cash flows.
Valuation methods turn derivative concepts into measurable prices and reveal how market variables affect contract values.
Course 4 · ~210 min
Match derivative positions to underlying exposures, calculate hedge ratios, construct basic delta hedges, and measure exposure using scenario analysis, sensitivity analysis, and value at risk concepts.
The central practical use of derivatives is controlling unwanted risk, which requires connecting valuation sensitivities to deliberate hedge decisions.
Course 5 · ~180 min
Analyze real-world derivative use cases, compare hedging and speculative objectives, evaluate counterparty and liquidity risks, and interpret how firms use derivatives within a risk management framework.
Market applications show how pricing and risk tools operate in practice across asset classes and clarify the trade-offs behind real financial decisions.