## Lesson 3: Introduction to Forwards and Futures

### Objectives of the Lesson:

### Develop an understanding about Forward & Futures contract.

### Know the difference between Forward & Futures contract.

### Understand pricing of Futures.

### Learn about Futures pay-off.

### Understand the use of Forward and Futures by market participants.

### Know about terminology related to Futures pricing.

**Lesson Topics**

- Topic 1 : Forwards and Futures
- Topic 2 : Tick Size | Contract Value | Basis
- Topic 3 : Initial Margin | Marking to Market | Open Interest
- Topic 4 : Calendar Spread | Pay off charts
- Topic 5 : Futures Pricing
- Topic 6 : Cash and Carry Model : Arbitrage
- Topic 7 : Non-arbitrage bound | Convenience Yield
- Topic 8 : Expectancy Model | Price Discovery
- Topic 9 : Arbitrage | Futures
- Topic 10 : Hedging | Speculation | Futures
- Topic 11 : Systematic Risk | Beta
- Topic 12 : Portfolio Beta | Hedge Ratio | Cross Hedge

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