Hi Mark, I would like to thank you for your free series in options, futures, and other derivatives. I learned quite a lot from you, and these also helped me to get a full-time contract at a bank. Much obliged!
Hi Mark, I hope you continue making these videos, They are a GREAT help, on top of reading the book along the side. You really make some arguments and confusions clear.
Title: "1. Options, Futures and Other Derivatives Ch1: Introduction Part 1" 1. Type of Video: Educational 2. Main Idea: The video introduces the concept of derivatives in finance, which are financial instruments that derive their value from a more basic underlying variable. This variable can be an asset like property or stocks, or an event such as snowfall in a region. The video also explains the difference between exchange-traded and over-the-counter (OTC) derivatives. 3. Detailed Summary: The speaker begins by introducing the textbook "Options, Futures and Other Derivatives" by John C. Hull, which is a standard in finance courses at both undergraduate and MBA levels. He acknowledges that the book can be challenging but assures the viewers that mastering its content will give them an edge in the field. The speaker then defines derivatives as financial instruments whose value is derived from a more basic underlying variable. This variable can be a real asset like property, a financial asset like stocks, an index (stock index, housing price index, inflation rate index), or even an event like snowfall in a ski resort. The underlying variable doesn't necessarily have to be an asset, which is why the term 'variable' is used. The video also explains the difference between exchange-traded and over-the-counter (OTC) derivatives. Exchange-traded derivatives are standardized contracts where a buyer and a seller come together to form a contract through a clearing house. This eliminates counterparty risk as the clearing house is the counterparty to all contracts. There has never been a default on an exchange-traded derivative, and they are highly regulated. OTC derivatives, on the other hand, can be standardized but allow for a lot of customization that can't be found on exchanges. The transaction is between a buyer and a seller (bilateral clearing), which means if the seller is unable to pay, the buyer hasn't really won anything. To eliminate counterparty risk, the buyer and seller can opt to clear through a central counterparty. The OTC market is less regulated than the exchange-traded market, but regulation is increasing. The speaker concludes by introducing some terminology that will be looked at in more detail later, such as forwards or forward agreements, which is an agreement to buy or sell a specific asset at a specific price at a certain future date. 4. Notable Quotes: "If you can get through this [the textbook], it elevates you above all others who can't in this field." "Derivatives are at the very heart financial instruments uh whose Val value depends on or I put in Brackets here is derived from and you'll notice derived is the root of derivatives." 5. Key Takeaways: - Derivatives are financial instruments that derive their value from a more basic underlying variable, which can be an asset or an event. - Exchange-traded derivatives are standardized, eliminate counterparty risk, and are highly regulated. - OTC derivatives allow for customization, have counterparty risk, and are less regulated but regulation is increasing. - Forwards or forward agreements are an agreement to buy or sell a specific asset at a specific price at a certain future date.
Hello Mark. Huge thanks for all these videos. I've been following your videos and they are really helpful for self study preparation for the cfa exams. thanks.
Hi Mark, at 15:34 min ish you say that it is an Asymmetrical Payoff, I think what you meant to say is that it is symmetrical, since the two parties move proportionally to each other ("adding both and getting a straight line"). From my understanding, this is true for Forwards/Futures but not the case for options, due to the premiums involved in such transactions. Either way, with options or Forwards/Futures, it is always a zero-sum gain. I think that is what you were trying to say, correct?
hey mark thank you so much for sharing your knowledge. i am starting this serious @24-08-2021 at the end video i am going to mention date. thank you so much again
Hey, I'm really throwing it out there, don't even know if you will see this, but you stopped your wonderful series at chapter 11, and I only found your videos when I was already in the prime of the Black Scholes Model and Futures, do you have any you can upload on the Greek Letters(chapter 19), Credit Risk(chp24) and Credit Derivatives(chapter 25)? As well maybe any reference to delta neutral, and how to find the percentage of the original portfolio be sold at when your not given the stock price but are given the value of portfolio.Thanks!
+Mark Meldrum Awh alright thank you anyways, I just have a test next week and was trying to find some sources for help. But again, your videos are great!
Hi Mark, I have gone through this book till the chapter 23 Credit Risk, and was wondering if I could finish the rest of the book through some Video lectures. I was disappointed to see that you have not done chapter 23 yet. Could you give me an idea by when you plan to do a video on chapter 24( Credit Derivatives)? Btw, I found the quality of your videos very good.
Dear Dr. meldrum Thank you for everything. I need to chat with you about options basics. Buying an option actually gives you the right not the obligation to buy a stock, Now, is it not vague and deceptive that I don't frankly own any stocks, so isn't this tricky and could be easily manipulative? Sorry if this sound ABC to you but I am looking to study something that is clean, safe and not to harm people. Thank you Sir!
Hey Mark! Firstly, it's a great work on your part to make these videos considering the difficulty level and technical aspects of the book. A big thanks for that! Secondly, I am currently pursuing FRM 1 and CFA 1 so after watching these videos of yours, it's been a tremendous help in understanding the concepts real simple. So I would like to make a request if you can make the videos for the remaining chapters as well so that all of us using your help can get a complete understanding of the book. Really looking forward to the videos. Thanks in advance!
Not to forget your site is the only reliable one to get a better understanding of the topics. It's a huge contribution as I honestly didn't get the explanation of the chapters anywhere else
Well "more basic" is not necessarily true is it? Thinking of option on futures or swaptions (ok, well the underlying is at least linear but still another derivative)?
Dr Mark Meldrum , your video is fantastic, Are you planning to take classes for FRM , i would love to have your style of delivery for FRM certification preparation. Please reply..
Does this course cover Level 2 Derivatives ? Thanks Mark, i had purchased Level 1 FRA notes and used your video series that were instrumental for my success in Level 1 exam
Hello Mark, I was wondering how much of this material will be on CFA Level 1? I am taking the exam in June and am also taking a class in Derivatives this Spring where we use this textbook. Is there a fair amount of cross over? Any major differences? Thank you and your videos have been hugely helpful so far. Best, -Zach
Hi Dr. Meldrum - Are there any show notes for this video series? Thank you SO much for the videos! They are absolutely great and I appreciate your time. Thanks, Ervell
Hi Mark, I've been following your CSC videos to prepare my CSC exams, they are fantastic. I was just wondering which course is this playlist about? Is it offered by CSI as well? Thanks!
+QiHua Xu It is not for a CSI course. It is based on a textbook by John Hull that is the standard for derivatives. A very difficult and advanced textbook, but is the standard in the industry.
Mark Meldrum Thanks! That's good to know! The standard in the industry, does it mean by people are expected to read the book or also need to take a test after for a certificate? just curious, sorry English is not my mother tongue
+Uzair Ali Somewhat - the CFA readings are condensed version of complete undergraduate/MBA courses. This playlist is the full course version of that condensed reading. If you are pressed for time, as you must be now, focus on the reading. In the end, the derivatives reading accounts for only 8% of the exam. The textbook underlying this playlist is John Hull's, considered one of the most challenging textbooks.
Hi Mark, you have done a great work in publishing these videos... Hats off to you.. Kindly let me know if u visit Dubai anytime.. I will be honored to host you!!
+Sanjay Kushwaha This playlist is based on John Hull's textbook. The CFA reading for derivatives is a very compressed version of what this playlist is doing. So, if pressed for time, do the CFA reading. This playlist goes over everything slowly.
Hi, How could u say derivatives instruments derive from underlying principle, If it's so then Mutual Fund should also be part of derivatives, I think derivatives is transformed from underlying principle 😊😊
This is a gem, I literally just spent 1h on this 16min course, pausing and rewinding at any points that I had to digest.
Now that the CFA exam has been posponed is a good moment to dig into this. Thanks for the course!
Carles Moreno Anguiano Same! I wanted to spend some time to understand derivatives better
Hi Mark, I would like to thank you for your free series in options, futures, and other derivatives. I learned quite a lot from you, and these also helped me to get a full-time contract at a bank. Much obliged!
thanks for this :) I am leaving academia after a maths PhD and looking for quant work - so this is really helpful
2:47 The explanation here perfectly solves my confusion. Thanks!!!
I got the book two days ago and started reading it. I will use the videos as a primer. Thank you very much.
Watching this guy makes me want to sign up and register for the CFA
You made this topic so interesting and less scary for me. Thank you
Hi Mark, I hope you continue making these videos, They are a GREAT help, on top of reading the book along the side. You really make some arguments and confusions clear.
Hey Mark, This is a wonderful series. Do you have any plans for uploading videos for the chapters post Chapter 11 in the book? Looking forward to it!
Title: "1. Options, Futures and Other Derivatives Ch1: Introduction Part 1"
1. Type of Video: Educational
2. Main Idea:
The video introduces the concept of derivatives in finance, which are financial instruments that derive their value from a more basic underlying variable. This variable can be an asset like property or stocks, or an event such as snowfall in a region. The video also explains the difference between exchange-traded and over-the-counter (OTC) derivatives.
3. Detailed Summary:
The speaker begins by introducing the textbook "Options, Futures and Other Derivatives" by John C. Hull, which is a standard in finance courses at both undergraduate and MBA levels. He acknowledges that the book can be challenging but assures the viewers that mastering its content will give them an edge in the field.
The speaker then defines derivatives as financial instruments whose value is derived from a more basic underlying variable. This variable can be a real asset like property, a financial asset like stocks, an index (stock index, housing price index, inflation rate index), or even an event like snowfall in a ski resort. The underlying variable doesn't necessarily have to be an asset, which is why the term 'variable' is used.
The video also explains the difference between exchange-traded and over-the-counter (OTC) derivatives. Exchange-traded derivatives are standardized contracts where a buyer and a seller come together to form a contract through a clearing house. This eliminates counterparty risk as the clearing house is the counterparty to all contracts. There has never been a default on an exchange-traded derivative, and they are highly regulated.
OTC derivatives, on the other hand, can be standardized but allow for a lot of customization that can't be found on exchanges. The transaction is between a buyer and a seller (bilateral clearing), which means if the seller is unable to pay, the buyer hasn't really won anything. To eliminate counterparty risk, the buyer and seller can opt to clear through a central counterparty. The OTC market is less regulated than the exchange-traded market, but regulation is increasing.
The speaker concludes by introducing some terminology that will be looked at in more detail later, such as forwards or forward agreements, which is an agreement to buy or sell a specific asset at a specific price at a certain future date.
4. Notable Quotes:
"If you can get through this [the textbook], it elevates you above all others who can't in this field."
"Derivatives are at the very heart financial instruments uh whose Val value depends on or I put in Brackets here is derived from and you'll notice derived is the root of derivatives."
5. Key Takeaways:
- Derivatives are financial instruments that derive their value from a more basic underlying variable, which can be an asset or an event.
- Exchange-traded derivatives are standardized, eliminate counterparty risk, and are highly regulated.
- OTC derivatives allow for customization, have counterparty risk, and are less regulated but regulation is increasing.
- Forwards or forward agreements are an agreement to buy or sell a specific asset at a specific price at a certain future date.
7 yrs ago, I spent hours on John Hull's book at the library of my alma mater, now I'm here learning again. Nostalgia.....
I wish i could go back to that time
Hello Mark, is the course still relevant in 2023-2024. Thank you for your time.
still works for 2025
Hello Mark. Huge thanks for all these videos. I've been following your videos and they are really helpful for self study preparation for the cfa exams. thanks.
Hi Mark, at 15:34 min ish you say that it is an Asymmetrical Payoff, I think what you meant to say is that it is symmetrical, since the two parties move proportionally to each other ("adding both and getting a straight line"). From my understanding, this is true for Forwards/Futures but not the case for options, due to the premiums involved in such transactions. Either way, with options or Forwards/Futures, it is always a zero-sum gain. I think that is what you were trying to say, correct?
May Allah reward you for your effort. I am very happy to listing their videos
hey mark thank you so much for sharing your knowledge. i am starting this serious @24-08-2021 at the end video i am going to mention date.
thank you so much again
Did you finish?
Huge thanks for this Mark, you are the best!
Thank you SO much for these videos!!
Hi Mark - great video. I am looking forward to supplement my readings with your videos! I am so glad that I found your channel. :)
Hey, I'm really throwing it out there, don't even know if you will see this, but you stopped your wonderful series at chapter 11, and I only found your videos when I was already in the prime of the Black Scholes Model and Futures, do you have any you can upload on the Greek Letters(chapter 19), Credit Risk(chp24) and Credit Derivatives(chapter 25)? As well maybe any reference to delta neutral, and how to find the percentage of the original portfolio be sold at when your not given the stock price but are given the value of portfolio.Thanks!
+dani goldsmith I don't teach the back end of that course until Fall 2016. So I will most likely add chapters post 11 in August.
+Mark Meldrum Awh alright thank you anyways, I just have a test next week and was trying to find some sources for help. But again, your videos are great!
Hi Mark, I have gone through this book till the chapter 23 Credit Risk, and was wondering if I could finish the rest of the book through some Video lectures. I was disappointed to see that you have not done chapter 23 yet. Could you give me an idea by when you plan to do a video on chapter 24( Credit Derivatives)? Btw, I found the quality of your videos very good.
@@HardLessonsOfLife I'm just studying the later chapters now - did you ever make videos on them?
@@MarkMeldrum did you ever make videos on the later chapters?
Dear Dr. meldrum
Thank you for everything. I need to chat with you about options basics. Buying an option actually gives you the right not the obligation to buy a stock, Now, is it not vague and deceptive that I don't frankly own any stocks, so isn't this tricky and could be easily manipulative? Sorry if this sound ABC to you but I am looking to study something that is clean, safe and not to harm people. Thank you Sir!
Options are a contract between two people, that’s it. Nothing is harmful on its own. There are harmful people, that’s it.
But there is no actual possession of the underlined asset, right?
Thank you so much!!! I hope that you do not stop making these immensely helpful videos.
I can tell this course is going to be good.
Great explanation! Thank you very much!
thanks for making this series.
Hey Mark!
Firstly, it's a great work on your part to make these videos considering the difficulty level and technical aspects of the book. A big thanks for that!
Secondly, I am currently pursuing FRM 1 and CFA 1 so after watching these videos of yours, it's been a tremendous help in understanding the concepts real simple. So I would like to make a request if you can make the videos for the remaining chapters as well so that all of us using your help can get a complete understanding of the book. Really looking forward to the videos.
Thanks in advance!
Not to forget your site is the only reliable one to get a better understanding of the topics. It's a huge contribution as I honestly didn't get the explanation of the chapters anywhere else
did you found remaining chaps anywhere? I have my exam tomorrow, reaaly need chap 12 & Chap 15
Thanks for doing this for all of us
Thank you for making this and posting it. Does anyone know if there is an audio book of the ninth edition?
Well "more basic" is not necessarily true is it? Thinking of option on futures or swaptions (ok, well the underlying is at least linear but still another derivative)?
what do you mean by the commission on exchange, is it the premium amount we are talking about?
You are awesome, Mark!
Hi Mark, you know if the book is in spanish to?? thanks.
Hi Mark, can you please upload the remaining chapters which weren't covered?
Hi Mark, do you share your whole notes for this playlist as well?
Book name and author and edition please used for these lectures
John C. Hull - Options, Futures and Other Derivatives
Dr Mark Meldrum , your video is fantastic, Are you planning to take classes for FRM , i would love to have your style of delivery for FRM certification preparation. Please reply..
Hi Mark, great series so far! Very simple concise explanations in the CFA series. Is there notes for this section as well?
+Christopher Horenburg I have not posted them - but I can put them up tomorrow morning.
@@MarkMeldrum where can I find the notes? Amazing course btw
Hi Mark,
Is there any chance to post chapter about Trading strategies involving options from this book?
Best regards
Please keep up with your great work!)
What "principle underlying assets" mean?
Does this course cover Level 2 Derivatives ?
Thanks Mark, i had purchased Level 1 FRA notes and used your video series that were instrumental for my success in Level 1 exam
About half.
Hello Mark, I was wondering how much of this material will be on CFA Level 1? I am taking the exam in June and am also taking a class in Derivatives this Spring where we use this textbook. Is there a fair amount of cross over? Any major differences? Thank you and your videos have been hugely helpful so far.
Best,
-Zach
If you are taking this course anyways, that should more than cover what you need for Level 1 derivatives, and even quite a bit for Level 2.
Can someone tell me how many chapters to complete in the DFOL course.?
Hi! You're so helpful !!! will you update all topics? Thanks a lot !!!
Hi Dr. Meldrum -
Are there any show notes for this video series?
Thank you SO much for the videos! They are absolutely great and I appreciate your time.
Thanks,
Ervell
gumroad.com/markmeldrum
second last row - the one in the middle with no picture...Chapters 1 to 7 only.
Thank you so much!
Hi Mark,
Is there any chance to post chapter about VaR from this book?
Best regards
Whats up is whats up for now. Busy with CFA L2 right now. I will be doing FRM videos in 2017 so I may get that chapter up.
Hi Mark, I've been following your CSC videos to prepare my CSC exams, they are fantastic. I was just wondering which course is this playlist about? Is it offered by CSI as well? Thanks!
+QiHua Xu It is not for a CSI course. It is based on a textbook by John Hull that is the standard for derivatives. A very difficult and advanced textbook, but is the standard in the industry.
Mark Meldrum Thanks! That's good to know! The standard in the industry, does it mean by people are expected to read the book or also need to take a test after for a certificate? just curious, sorry English is not my mother tongue
+QiHua Xu Typically you would take a derivatives course as part of your degree or MBA.
Mark Meldrum OK I see. Thanks
Hi, are your slides available online by any chance?
Any idea how much these videos deviate from readings 58, 59, & 60?
+Cameron Lee Start here
ruclips.net/video/oy8R2QZFqso/видео.html
is this a part of derivatives for cfa level 1?
Are there videos after chapter 7?
Hi prof. Mark thanks for your great effort, is there any video notes for the book?
Hi, Mark, these videos are really great. Did you do the rest of chapters?
No.just the ones you see there.
Hi Mark, how can I access the rest of the videos? I mean after ch 11. thanks
Thats all there is.
Hey Mark.
Are these videos relevant to the CFA Level 1 derivatives section?
+Uzair Ali Somewhat - the CFA readings are condensed version of complete undergraduate/MBA courses. This playlist is the full course version of that condensed reading. If you are pressed for time, as you must be now, focus on the reading. In the end, the derivatives reading accounts for only 8% of the exam. The textbook underlying this playlist is John Hull's, considered one of the most challenging textbooks.
Hi Mark, you have done a great work in publishing these videos... Hats off to you.. Kindly let me know if u visit Dubai anytime.. I will be honored to host you!!
hi mark thanks for the videos they are very helpful but is this for cfa level 1 or basic
+Sanjay Kushwaha This playlist is based on John Hull's textbook. The CFA reading for derivatives is a very compressed version of what this playlist is doing. So, if pressed for time, do the CFA reading. This playlist goes over everything slowly.
Thanks for this!😘
Mark, hello. Do you start the CAIA project anytime soon?
That was not a high demand option so I won't be doing that.
Hi Mark Meldrum, videos made recently about trading seem to have been taken off or made private, will they be returned and updated? Thanks anyways
Hi,
How could u say derivatives instruments derive from underlying principle, If it's so then Mutual Fund should also be part of derivatives,
I think derivatives is transformed from underlying principle 😊😊
Thank you!
bro mark complete the other chapters 12 / 13 /15 /19
Necesito sub en español
wewilsee