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Fundamentals of derivatives valuation

Understand the basic concepts of derivatives pricing and learn how to value some of the common financial derivatives.

Price: USD 1,050 per delegate

Book > 14 days in advance, only USD 900

Group discounts available: please enquire

  • Location:  Hong Kong
  • Upcoming dates: Please enquire

This intensive 1 day course is led by highly experienced industry practitioners. Our trainers are professional risk managers and consultants who are actively involved in risk management and finance. They will provide practical examples and case studies to motivate and aid understanding of difficult pricing concepts.


Derivatives have grown quickly both in popularity and complexity over recent years. An understanding of the mechanics and pricing of derivatives has become ever more important for trading, accounting, and risk management purposes.

The training course is intended to introduce participants to the concepts of derivatives pricing and to give them an understanding of how to value derivatives. No prior knowledge of financial derivatives is assumed. The course is suitable for anyone who has an interest in derivatives and who would like to develop an understanding of valuation methods.

An overview of the characteristics and uses of derivatives will be given. The basic elements of derivatives valuation discounting, no arbitrage, hedging, and volatility will be explained. Widely accepted analytical and numerical methods, such as Black-Scholes model and binomial trees, will be illustrated with examples. The course will also look at more advanced topics, including implied volatility, the Greeks, risk-neutral valuation, and exotic options.


  • Gain an understanding of the mechanics and uses of financial derivatives, including forwards, futures, options, and swaps
  • Understand the basic concepts of derivatives valuation and their applications
  • Learn how to value financial derivatives using widely accepted analytical and numerical methods
  • Develop an appreciation of derivative risk management, including hedging and the Greek letters


  • Traders and front office professionals
  • Risk management professionals and consultants
  • Business analysts involved with derivatives valuation
  • Financial and product controllers
  • Quantitative analysts and developers
  • Students of CFA, FRM and PRM qualifications

Detailed Course Syllabus

PART A: Introduction to derivatives

Definition and characteristics

An overview of the derivatives markets

Why use derivatives?

PART B: Valuation of bonds and interest rate swaps

Time value of money

Discounted cash flow method

PART C: Valuation of forwards and futures

The principle of no arbitrage

Pricing and valuation of stock, index, and currency forwards


PART D: Valuation of options

Put-call parity

Binomial tree

Black-Scholes model

Valuation of European and American vanilla options

PART E: Special topics

Implied volatility

Delta hedging

The Greek letters

Risk-neutral valuation

Monte Carlo method

Exotic options