Frm Part 1 Nano 5 : Derivatives And Valuation (English)

Master forwards, futures, options, swaps, and derivative pricing in English — from beginner basics to FRM Part I exams

What you'll learn

Understand in English the fundamental concepts of derivatives and their role in financial markets

Differentiate in English between forwards, futures, options, and swaps, and explain how each works

Apply in English basic valuation techniques to price derivatives under FRM Part I standards

Interpret in English payoff diagrams for calls, puts, forwards, and futures contracts

Recognize in English the use of derivatives in hedging, speculation, and risk management

Build a strong foundation in English for the “Derivatives & Valuation” section of the FRM Part I exam

Requirements

No prior experience with derivatives is required — this course is beginner-friendly and taught fully in English

Basic knowledge of financial markets and risk management concepts (helpful, but not mandatory)

A calculator, notebook, and willingness to practice exam-style questions

An interest in preparing for the FRM Part I exam or improving professional knowledge of derivatives

Description

Note on course delivery:To ensure clarity and consistency, some of the voiceovers in this course are generated using AI voice technology. All content, examples, and explanations have been carefully prepared by the instructor to match the FRM curriculum.Are you preparing for the FRM Part I exam and looking for a clear, concise way to master derivatives and valuation?This course, FRM Nano 5: Derivatives & Valuation (in English), is designed to give you a strong understanding of the essential derivative instruments and their pricing — explained in simple, exam-focused English.Derivatives play a critical role in financial markets and risk management. In the FRM exam, this section is heavily tested, and mastering it will significantly improve your chances of success.What you will learn in this course:Introduction to Derivatives – what derivatives are and why they matterForwards & Futures – mechanics, payoff structures, and hedging strategiesOptions Fundamentals – calls, puts, moneyness, payoff diagrams, and strategiesSwaps & Valuation – interest rate swaps, currency swaps, and cash flow valuationDerivative Pricing – cost-of-carry, no-arbitrage principles, and exam applicationsExam Practice – solve FRM-style questions with confidenceWhy take this course?-Content tailored for the FRM Part I curriculum-Clear explanations in English, perfect for global learners-Bite-sized “Nano” format for quick, focused learning-Practice quizzes with 50+ exam-style questions to test your knowledge-Real-world insights into how derivatives are used in hedging, speculation, and risk managementThis course is part of the FRM Nano Series, where each Nano focuses on one exam domain, making it easier to learn, revise, and master key concepts step by step.Who this course is for:FRM Part I candidates preparing for the exam in EnglishStudents of finance, economics, and business who want to understand derivativesProfessionals in banking, trading, and risk management seeking a refresherAnyone who wants to learn the language of derivatives in a clear, structured wayBy the end of this Nano, you’ll be confident in your ability to explain, value, and apply derivatives concepts — both in the exam and in professional practice.

Overview

Section 1: Introduction to Derivatives

Lecture 1 Introduction to Derivatives

Lecture 2 What Are Derivatives Definition, Uses, and Risks

Lecture 3 Types of Derivatives – Forwards, Futures, Options, and Swaps

Section 2: Forwards and Futures

Lecture 4 Lecture 4 Forward Contracts – Mechanics and Payoffs

Lecture 5 Futures Contracts – Standardization and Clearinghouses

Lecture 6 Pricing Forwards and Future

Section 3: Options Fundamentals

Lecture 7 Call and Put Options

Lecture 8 Option Strategies – Spreads, Straddles, and Hedges

Lecture 9 The Put-Call Parity Relationship

Section 4: Swaps and Valuation

Lecture 10 Interest Rate Swaps – Structure, Applications, and Valuation

Lecture 11 Currency Swaps – Mechanics and Uses

Lecture 12 Other Swaps – Equity, Credit Default, and Commodity Swaps

Section 5: Derivative Pricing & Exam Applications

Lecture 13 Arbitrage-Free Pricing

Lecture 14 Overview of the Binomial Option Pricing Model

Lecture 15 Financial-Markets-and-Products

Section 6: Wrap-Up & Next Steps

Lecture 16 Recap of Derivatives & Valuation Basics

Lecture 17 Key Takeaways for FRM Exam Success

Students preparing for the FRM Part I exam who want a clear, concise guide to derivatives & valuation in English,Finance, banking, and risk management professionals seeking to strengthen their knowledge of options, futures, and swaps,University students or graduates in business, economics, mathematics, or related fields looking to build a strong foundation in derivatives,Beginners who want to learn derivatives concepts in simple English, with no advanced math required,Anyone interested in understanding how derivatives are used for hedging, speculation, and risk management