All finance lessons

Derivatives and Hedging

Choose a hedge, explain its payoff and check what risk remains.

Lessons in order

Build each skill in sequence, or jump to a topic you need to review.

  1. Call option payoffFoundation · Ready to start
  2. Protect a share position with a putIntermediate · Ready to start
  3. Hedge a currency payableFoundation · Ready to start
  4. Size a forward hedgeIntermediate · Ready to start
  5. Price a call in a two-state treeAdvanced · Ready to start
  6. Explain delta and gammaAdvanced · Ready to start

Capstone case

Use the numbers to defend a decision in two steps.

Protect a rupee payment budget