Introduction to Derivatives by

Bahattin Büyükşahin

About the Instructor

Bahattin Büyükşahin has over 15 years of experience in financial oil and energy markets covering the spectrum of energy derivatives markets, including financialization of commodities, the impact of financial market participants on energy price formation and volatility, the evolving regulatory framework and its effect on the structure and functioning of both the energy futures and physical markets, as well as the likely cost and benefits of proposed regulations.

Bahattin Büyükşahin holds a Ph.D. in Economics from American University, Washington D.C.

Syllabus and Materials

Week 1: June 8, 2020 - Overview of Derivatives Markets     

Mechanics of the Derivatives Markets What They Are and How They Function   

Who are the Market Participants?     

Why do Market Participants use Derivatives?     

Exchange versus Over the Counter Markets     

Risk Transfer and Price Discovery

Week 2: June 15, 2020 - Derivatives Products: Forwards     

What is a Forward?     

Use of Forwards     

Advantages and Disadvantages of Forwards   

Pricing of Forwards

Week 3: June 22, 2020 - Derivatives Products: Futures     

What is a Future?     

Contract Specifications     

Clearinghouse Margins     

Settlement Price, Volume and Open Interests in Futures Markets     

Types of Orders     

Uses of Futures / Hedging using Futures Contracts     

Basis Risk

Week 4: June 29, 2020 - Derivatives Products: Swaps     

What is a Swap?     

Mechanics of Swaps     

Advantages and Disadvantages of Swaps     

Hedging using Swaps

Week 5: July 5, 2020 - Options     

Mechanics of Call and Put Options     

Moneyness of Options     

Hedging using Options     

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