By the end of this course, learners will be able to identify the structure of forward contracts, apply compounding and spot rate concepts, analyze forward rate agreements, calculate forward pricing models, and evaluate hedging strategies for managing risk. The course builds a strong foundation in derivatives, progressing from fundamental principles to advanced applications in commodity markets and foreign exchange.
Forward Contracts: Analyze, Apply & Hedge
Gain insight into a topic and learn the fundamentals.
8 hours to complete
Flexible schedule
Learn at your own pace
What you'll learn
Define project finance fundamentals and analyze feasibility.
Build models with assumptions, cash flows, IRR, and NPV.
Evaluate risks using sensitivity analysis and financial ratios.
Skills you'll gain
Details to know
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Recently updated!
October 2025
Assessments
12 assignments
Taught in English
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There are 3 modules in this course
This module introduces the fundamentals of forward contracts and their role in derivatives markets. Learners explore the structure, payoff profiles, and applications of forwards, supported by compounding and spot rate concepts. The module also covers Forward Rate Agreements (FRAs), preparing learners to understand the basics of interest rate risk management.
What's included
11 videos4 assignments1 plugin
This module focuses on the pricing of forward contracts under different market conditions. Learners examine pricing fundamentals, adjustments for dividends, carrying costs, and short positions. Practical applications are explored through commodity forwards and arbitrage strategies to solidify understanding of real-world scenarios.
What's included
10 videos4 assignments
This module advances into the complexities of commodity forwards, lease rates, and convenience yield. Learners explore the impact of storage costs, foreign exchange risk, and hedging strategies on forward contracts. The module concludes with interest rate parity and its role in global financial markets, enhancing learners’ ability to apply risk management techniques.
What's included
12 videos4 assignments
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