Options, Futures, Forwards, Swaps - What are Derivatives? 📈 Intro for Aspiring Quants

𝙁𝙄𝙉𝘼𝙉𝘾𝙀 𝘾𝙊𝙐𝙍𝙎𝙀𝙎 from Socratica https://www.socratica.com/pages/finance-courses 𝘿𝙀𝙍𝙄𝙑𝘼𝙏𝙄𝙑𝙀𝙎 are financial assets that give you specialized control over your investments. They can be used to reduce risk (hedging) or greatly increase risk (leverage). Today we introduce Options, Futures, Forwards, and Swaps. 𝙅𝙪𝙢𝙥 𝙩𝙤 𝙙𝙞𝙛𝙛𝙚𝙧𝙚𝙣𝙩 𝙩𝙤𝙥𝙞𝙘𝙨: 0:00 Intro to Derivatives 0:14 Options & Strike Price 0:49 Call vs Put Options 1:55 Example: Put option for wheat harvest 2:31 Futures & Future Price 2:54 Example: Futures contract on wheat 3:18 S&P 500 and E-mini futures 4:08 Mark to market accounting (MTM) 4:30 Socratica Quant Course 4:44 Over the counter market (OTC) 5:08 Forward contracts 5:18 The swap 5:29 Example: interest rate swap 5:48 vocab: SOFR & Basis points 𝙄𝙨 𝙩𝙝𝙚𝙧𝙚 𝙖 𝘾𝙤𝙪𝙧𝙨𝙚? If you’re serious about becoming a quant, we're building a course that doesn't waste your time. No filler. Just clean code, focused projects, and a deep dive into the tools used by professionals. Connect with us to learn when the Quantitative Finance course launches: 💌 https://snu.socratica.com/quantitative-finance 𝙒𝙀 𝙍𝙀𝘾𝙊𝙈𝙈𝙀𝙉𝘿 Paul Wilmott Introduces Quantitative Finance 📘 https://amzn.to/3Qe8zab The Big Short (movie) 🎬 https://amzn.to/4jbl5DJ 𝘼𝘽𝙊𝙐𝙏 our Instructor: Michael Harrison earned his BS in Math from Caltech, and did his graduate work in Math at UC Berkeley and University of Washington, specializing in Number Theory. A self-taught programmer, Michael taught both Math and Computer Programming at the college level. He applied this knowledge as a financial analyst (quant) and as a programmer at Google. 𝙎𝙐𝘽𝙎𝘾𝙍𝙄𝘽𝙀 to Socratica: 🦉 http://bit.ly/SocraticaSubscribe 𝙎𝙐𝙋𝙋𝙊𝙍𝙏 Socratica on Patreon: 🅿️ https://www.patreon.com/socratica Music licenses: Carnival of the Animals: code: ZOKILKL4LDOWEQKF Fugue Frenzy: code: UEXUOYKIG3FWFXFI #quantitativefinance #derivatives #finance