Distribution of Payoffs of Simple Options

In this short video, we explore the distribution of option payoffs for simple options like calls and puts and for contracts like forwards, given the distribution of the driver of their payoffs – the stock price.
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The Lognormal Distribution (FRM Part 1)

In this swatch, we spend some time exploring a very important distribution in option pricing – the lognormal distribution.
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Absolute vs Relative VaR

In this swatch, we differentiate between Absolute and Relative Value-at-Risk (VaR). The distinction is important from the perspective of questions posed in the exam.
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Copulas: An Introduction

In this swatch, we introduce copulas – a topic that makes an appearance in FRM Part 1 curriculum and then re-appears in much more detail (along with applications) in FRM Part 2.
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Theories of Interest Rate Term Structures

In this swatch, we take a look at three proposed theories of why interest rates have term structures i.e. they are not flat or constant.
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Duration, DVO1, Maturity and Coupon (FRM Part 1)

In this swatch, we look at a graphical analysis of how first-order yield based risk metrics (Duration and DVO1) vary with characteristics of the instrument (mainly maturity and coupon).
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