Commodities, Derivatives and Structured Products
This eCourse consists of two modules. Module 1 looks at how the market for inflation derivatives developed out of the index-linked security market. We will also discuss the structures and uses of various inflation derivative instruments.
Module 2 covers how to price an index-linked bond and measure the sensitivity of the prices of these bonds to changes in real and nominal yields. You will also learn how to build an inflation curve in order to price inflation swaps, and how to value an inflation option.
On completion of this course, you will be able to:
- Define inflation
- Define an index-linked security
- Distinguish between inflation derivative structures and discuss their uses
- Price an index-linked bond
- Measure the price sensitivity of index-linked bonds
- Price an inflation derivative
Module 1: Inflation-Linked Instruments - An Introduction
Topic 1: Basics of Inflation
Topic 2: Index-Linked Securities
Topic 3: Inflation Derivatives