Options, swaps, futures, MBSs, CDOs, and other derivatives

Forward and futures contracts

In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two.
3:11
Forward contract introduction
Forward Contract Introduction
3:29
Futures introduction
Futures Introduction
2:41
Motivation for the futures exchange
How an exchange can benefit from trading futures and how it can use margin to mitigate its risk
3:39
Futures margin mechanics
Understanding the mechanics of margin for futures. Initial and maintenance margin
3:48
Verifying hedge with futures margin mechanics
Verifying Hedge with Futures Margin Mechanics
3:19
Futures and forward curves
Normal and Inverted Futures Curves
4:07
Contango from trader perspective
What a trader means when they say that a market is in contango
2:28
Severe contango generally bearish
Thinking about why a severe contango could be bearish
3:26
Backwardation bullish or bearish
Thinking about why backwardation in commodities markets is bullish
3:51
Futures curves II
Futures Curves II
4:11
Contango
3:57
Backwardation
Backwardation and the theory of Normal Backwardation
3:44
Contango and backwardation review
Review of the difference uses of the words contango, backwardation, contango theory and theory of normal backwardation
4:19
Upper bound on forward settlement price
Upper Bound on Forward Settlement Price
4:13
Lower bound on forward settlement price
Lower Bound on Forward Settlement Price
4:07
Arbitraging futures contract
4:01
Arbitraging futures contracts II
Arbitraging Futures Contracts II
3:09
Futures fair value in the pre-market
What is the Futures Fair Value and how to traders use it as an indicator for stock price direction at market opening
3:38
Interpreting futures fair value in the premarket
How to interpret the market price of a futures contract relative to the fair value in the premarket

Black-Scholes formula

Options have been bought and sold for ages, but finding a rational way to price them seemed beyond our mathematical know-how... until 1973 when Fischer Black and Myron Scholes showed up and gave us the Black-Scholes model. This work was later extended by Robert Merton and now underpins much of modern finance.
10:24
Introduction to the Black-Scholes formula
5:00
Implied volatility