Financial Markets Fundamentals eLearning

This eLearning offers you an in depth explanation about money market products, derivatives, and pricing.

This eLearning is also a basic preparation for the ACI operations or dealing certificate exams.

There are 5 sessions:

1. Basic Interest rate calculations
2. Money markets
3. Currency markets
4. Fixed income securities and interest rate swaps (IRS)
5. Options

A free demo of the eLearning is available on the internetsite.

The topics per session are:

Session (1) Basic interest rate calculations:
(21 slides with text explanations and 17 multiple choice quiz questions)

• Coupon amount and rate of return;
• Present and future value;
• International Day count conventions and conversion;
• Semi-annual coupons and conversion;
• Broken periods;
• True Yield and Pure discount rates and conversion;
• Yield curve information and explanation
• Implied forward rates.

Session (2) Money Markets:
(59 slides with text explanations and 36 multiple choice quiz questions)

• Benchmarks;
• Deposits and Loans; Eurodollar;
• Money Market Securities (CP, CD, Bank bills, T-bills);
• Repurchase agreements, Repo’s (general, special, sell-buy back, GMRA, tri-party);
• Forward-forwards;
• Risk management using FRA’s and STIR Futures,
• Margins;
• Overnight Index Swaps (OIS).

Session (3) Fixed Income securities and Interest Rate Swaps:
(33 slides with text explanations and 25 multiple choice questions)

• Fixed Income loan programs;
• Bond types; Securitization;
• Issue of Government Bonds and Corporate Bonds;
• Special bond types;
• Bond Valuation and Price Sensitivity;
• Modified Duration;
• Interest Rate Swaps Specifications and Valuation;
• Funding and Asset swaps;
• Swap Assignment;
• (Modified) Duration;
• Interest Rate Swaps (IRS).

Session (4) Currency Markets:
(46 slides with text explanations and 23 multiple choice quiz questions)

• Market characteristics;
• FX positions and valuation;
• FX spot transactions;
• Cross rates;
• FX forwards calculation swap points;
• Ex ante dates;
• Non deliverable forwards (NDF);
• Currency swaps;
• Applications FX forwards (cash management; hedging fx risk);
• Covered interest rate arbitrage;
• Basis swaps;
• Cross Currency Swaps;
• Translation fx risk;
• CLS settlement.

Session (5) Options:
(43 slides with text explanations and 35 multiple choice questions)

• Option types;
• Terminology;
• Premium (Black & Scholes);
• FX options;
• Interest rate options (Cap / Floor);
• Sensitivity parameters (the Greeks);
• Delta position and hedge;
• Option combinations (for example Straddle, Strangle, Cylinder);
• Swaptions;
• Embedded options (convertible; dual currency deposit)