Derivative Valuation Simplified: I.R. Swaps, Caps, & floors

Derivative Valuation Simplified: I.R. Swaps, Caps, & floors

This course is designed to provide a conceptual overview of the valuation of interest rate swaps, caps, and floors. Although derivatives valuation involves complex math equations, this course focuses on concepts, not formulas. It explains derivative valuation in terms of logical statements, graphs, and numerical examples. It is intended for executives that may manage staff or consultants involved in derivatives valuation as well as analysts that may want a conceptual introduction to the fundamentals of derivatives valuation. It provides a sound fundamental understanding should more in depth study be contemplated.

First, it provides an overview of the provisions of contracts for swaps, caps, and floors. Second, it discusses and illustrates the rationale for investor use of these derivatives. Third, it explains and illustrates the conceptual basis for the valuation of those derivatives, using simple numerical illustrations and graphs. Fourth, it discusses the various factors that affect the value of swaps, caps and floors. Finally, it covers the interactions among swaps, caps, and floors and how dealer risk management impacts market efficiency.

This course provides a conceptual overview of the valuation of interest rate swaps, caps, and floors.

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What you will learn

• Identify the provisions and mechanics of swaps, caps, and floors.
• Recognize the rationale for investor use of swaps, caps and floors.
• Identify the factors that affect the value of those derivatives.

Rating: 4.08333

Level: Expert Level

Duration: 1 hour

Instructor: Illumeo Learning