Chapter  Topics  Study Time 

Financial Derivatives Refresher 
Refresher: What are derivatives? Why do people use it? The building blocks of financial derivatives: Credit extension products, price fixing products, and price insurance products.

1.5 
Price Fixing Products 
Swaps: A discussion on the typical parameters of a swap (such as  'Notional Principal', 'Benchmark Rates', 'Settlement Frequencies', etc.) Interest Rate Swaps: Key terminologies (such as  terms related to fixed rate payment, and floating rate payment, etc.) Forward Rate Agreements (FRAs): Introduction to FRAs and its calculation for swap pricing.

1 
Indian IRS Market 
Interest Rate Benchmarks (such as  INBMK, MIFOR and MIBOR). Overnight Index Swaps (OIS): Its features (such as  floating benchmark, compounding on floating side, etc.). How does OIS work? BondOIS Hedge. Trading the OIS, GSec OIS spread and the OIS curve.

1.5 
Interest Rate Futures (IRF) 
IRF features, Trading margins (initial and extreme loss margin). Settlement: Discussion on IRF settlement (daily mark to market and final settlements).
TBill Futures: How TBills futures work? A scenario based example to calculate discount yield. IRF Hedging: How IRF hedging works. IRF Trading: A detailed discussion on various trading strategies (such as  'Directional Tades','Calendar Spread', etc.).

1 
Currency Swaps 
Need for Currency Swaps, with an example. Variants of Currency Swaps: Principal Only swap, Coupon only swap, Amortising swap. Hedging Currency Swaps: How a bank would cover a position?

0.5 
Exotic Swaps 
Basis Swaps: Floating to floating  'Arrears Reset Swap','Yield Curve Swap', and 'Differential Swap'.

0.5 
TOTAL RECOMMENDED LEARNING HOURS  6 
Chapter  Topics  Study Time 

PricingForwards & FRAs 
Understanding the pricing framework using 'Forward Contracts' and FRAs.

0.5 
Swap Pricing 
Pricing of LTFX Contracts/Currency Swaps/Exotics  Arrears Reset Swap.

2 
Hedging Swaps 
A discussion on how to hedge a Swap Portfolio, by 

1 
Derivatives Operations 
Steps: Processes involved in a derivative transaction (such as  document verification, MTM/ valuation, handling cashflow maturities, etc.) Risk Management: Discussion on market risk exposures (such as  PV01, factor sensitivity limits, etc.), credit risk exposures (settlement risk, etc.), and netting arrangments (such as 'CloseOut' and 'CrossProduct' netting, etc.). 
2 
Comprehensive Illustration  Cradle to Grave 
Currency Swap  Deal Inception to Settlement.

1 
TOTAL RECOMMENDED LEARNING HOURS  6.5 
Chapter  Topics  Study Time 

An Introduction to Options 
Features of an Option Contract. Options Terminology: Brief discussion on key terms (such as  exercise style, moneyness, intrinsic value/ time value etc.). Types Of Options: An introduction to 'Put' and 'Call', Put  Call Parity. Usage and Applications of Options: Discussion on the payoff profiles. How can we use options? Discussion on using options as a hedging instrument. Speculation using options.

1 
Options Strategies 
Types of Option Strategies: A detailed discussion along with illustrated PayOff diagrams for 'Call Spread','Put Spread','Long Straddle','Short Straddle','Risk Reversal', etc. Options Trading  Interbank: How options are traded in the Interbank market. Exotic Options: A discussion on 'Digital Options' and 'Barrier Options'. Interest Rate Options: Types of interest rate options, such as  'Interest Rate Caps','Floors', and 'Collars'. Swaptions: Definition and their use. Difference between Swaption and a cap.

1.5 
Options Pricing  Vanilla Products 
Option Pricing  Understanding options pricing, and its determinants Pricing Models: A detailed discussion on 'BlackScholes Model' with illustrations. Pricing strategies using a live BlackScholes spreadsheet.

1.5 
Options Pricing  Exotic Options 
Pricing an Exotic option using Binomial Trees: Stepwise binomial tree construction. Pricing 'Exotic Options' using a sample pricer from John Hull. Pricing Exotic Options (such as  barrier options, interest rate cap/ floor pricing and interest rate collar pricing, etc.).

1.5 
Hedging Option Positions 
Introduction to 'Option Greeks'. Measuring different dimensions of risk in an option position, and illustrations with the help of a 'BlackScholes' spreadsheet. Delta Hedging in practice. Operational Aspects of an Option Deal: Key operations specific to options (such as  type of deal, settlement date, etc.).

1 
TOTAL RECOMMENDED LEARNING HOURS  6.5 