FINANCE-07 · Advanced · ENGLISH · PLANNED
Trace cash flows, calculate a transparent model, stress-test assumptions and explain risk.
Study time is an initial activity estimate, excluding extra reading, revision and extended laboratory or project work. Videos and question bodies have not been produced by adding this outline.
Complete these courses or demonstrate equivalent knowledge. These are recommended prerequisites, not enforced enrolment locks.
YouTube playlist: ARK Finance | Fixed Income, Derivatives and Hedging
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Sign in to save this learning pathPractical outcome: Measure interest-rate sensitivity for fictional bonds.
Explain bond cash flows using a visual and one worked real-world example. Context: Measure interest-rate sensitivity for fictional bonds. End with a prediction or check-for-understanding.
Explain bond prices using a visual and one worked real-world example. Context: Measure interest-rate sensitivity for fictional bonds. End with a prediction or check-for-understanding.
Explain yield to maturity using a visual and one worked real-world example. Context: Measure interest-rate sensitivity for fictional bonds. End with a prediction or check-for-understanding.
Explain yield curves using a visual and one worked real-world example. Context: Measure interest-rate sensitivity for fictional bonds. End with a prediction or check-for-understanding.
Use the first concepts from this section. Measure interest-rate sensitivity for fictional bonds. Produce a labelled diagram, trace or calculation; explain each step and check one changed input.
3–6 questions on the preceding first-half concepts only: recall, visual interpretation, application and one plausible misconception. Explain each answer after submission.
Explain duration using a visual and one worked real-world example. Context: Measure interest-rate sensitivity for fictional bonds. End with a prediction or check-for-understanding.
Explain convexity using a visual and one worked real-world example. Context: Measure interest-rate sensitivity for fictional bonds. End with a prediction or check-for-understanding.
Explain credit spreads using a visual and one worked real-world example. Context: Measure interest-rate sensitivity for fictional bonds. End with a prediction or check-for-understanding.
Explain default risk using a visual and one worked real-world example. Context: Measure interest-rate sensitivity for fictional bonds. End with a prediction or check-for-understanding.
Measure interest-rate sensitivity for fictional bonds. Work without the example, compare two cases, record assumptions and limitations, then self-review correctness, reasoning and clarity.
6–12 questions covering Bond cash flows, Bond prices, Yield to maturity and the remaining section concepts, with cumulative retrieval from earlier sections. Include a new transfer problem; 70% unlocks progression.
Practical outcome: Draw payoffs for hypothetical contracts without giving trading advice.
Explain forwards using a visual and one worked real-world example. Context: Draw payoffs for hypothetical contracts without giving trading advice. End with a prediction or check-for-understanding.
Explain futures using a visual and one worked real-world example. Context: Draw payoffs for hypothetical contracts without giving trading advice. End with a prediction or check-for-understanding.
Explain calls using a visual and one worked real-world example. Context: Draw payoffs for hypothetical contracts without giving trading advice. End with a prediction or check-for-understanding.
Explain puts using a visual and one worked real-world example. Context: Draw payoffs for hypothetical contracts without giving trading advice. End with a prediction or check-for-understanding.
Use the first concepts from this section. Draw payoffs for hypothetical contracts without giving trading advice. Produce a labelled diagram, trace or calculation; explain each step and check one changed input.
3–6 questions on the preceding first-half concepts only: recall, visual interpretation, application and one plausible misconception. Explain each answer after submission.
Explain option payoffs using a visual and one worked real-world example. Context: Draw payoffs for hypothetical contracts without giving trading advice. End with a prediction or check-for-understanding.
Explain put-call parity using a visual and one worked real-world example. Context: Draw payoffs for hypothetical contracts without giving trading advice. End with a prediction or check-for-understanding.
Explain swaps using a visual and one worked real-world example. Context: Draw payoffs for hypothetical contracts without giving trading advice. End with a prediction or check-for-understanding.
Explain margin and collateral using a visual and one worked real-world example. Context: Draw payoffs for hypothetical contracts without giving trading advice. End with a prediction or check-for-understanding.
Draw payoffs for hypothetical contracts without giving trading advice. Work without the example, compare two cases, record assumptions and limitations, then self-review correctness, reasoning and clarity.
6–12 questions covering Forwards, Futures, Calls and the remaining section concepts, with cumulative retrieval from earlier sections. Include a new transfer problem; 70% unlocks progression.
Practical outcome: Test a toy hedge and explain residual risk.
Explain no-arbitrage reasoning using a visual and one worked real-world example. Context: Test a toy hedge and explain residual risk. End with a prediction or check-for-understanding.
Explain binomial option pricing using a visual and one worked real-world example. Context: Test a toy hedge and explain residual risk. End with a prediction or check-for-understanding.
Explain black-scholes assumptions using a visual and one worked real-world example. Context: Test a toy hedge and explain residual risk. End with a prediction or check-for-understanding.
Explain option greeks using a visual and one worked real-world example. Context: Test a toy hedge and explain residual risk. End with a prediction or check-for-understanding.
Use the first concepts from this section. Test a toy hedge and explain residual risk. Produce a labelled diagram, trace or calculation; explain each step and check one changed input.
3–6 questions on the preceding first-half concepts only: recall, visual interpretation, application and one plausible misconception. Explain each answer after submission.
Explain hedge ratios using a visual and one worked real-world example. Context: Test a toy hedge and explain residual risk. End with a prediction or check-for-understanding.
Explain basis risk using a visual and one worked real-world example. Context: Test a toy hedge and explain residual risk. End with a prediction or check-for-understanding.
Explain counterparty risk using a visual and one worked real-world example. Context: Test a toy hedge and explain residual risk. End with a prediction or check-for-understanding.
Explain hedging versus speculation using a visual and one worked real-world example. Context: Test a toy hedge and explain residual risk. End with a prediction or check-for-understanding.
Test a toy hedge and explain residual risk. Work without the example, compare two cases, record assumptions and limitations, then self-review correctness, reasoning and clarity.
6–12 questions covering No-arbitrage reasoning, Binomial option pricing, Black-Scholes assumptions and the remaining section concepts, with cumulative retrieval from earlier sections. Include a new transfer problem; 70% unlocks progression.
Combine all three sections: Test a toy hedge and explain residual risk. Submit an original worked artifact, evidence or tests, assumptions and a reflection. Rubric: correctness, method, practical usefulness, reproducibility and communication. Self-reviewed, not certified.
6–12 balanced questions sampling every section of Fixed Income, Derivatives and Hedging, including interpretation, calculation or reasoning, a misconception and a new application. Passing is 70%; review errors before retrying.
Fictional USD budgets, statement analysis, valuation models and risk scenarios. Guided work leads to an independent attempt, with a diagram, explanation, trace, calculation or tested artifact. Question bodies are generated when opened in your private learning path. Programming submissions are stored as text; the platform does not execute submitted code.
Use original or appropriately licensed datasets. Practical science activities use models or supplied data unless a qualified supervisor has reviewed a physical experiment.
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