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Financial Derivatives: A Quantitative Finance View (Udemy.com)

The financial engineering of forwards, futures, swaps, and options, with Python tools for fixed income and options

Created by: Cameron Connell

Last updated November 2023

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What you will learn

  • Learn the fundamentals of derivatives at a quantitative level
  • Master arbitrage, the core principle underlying derivatives, quantitative risk management and quantitative trading
  • Use derivatives to control and manage financial risk
  • Price forwards, futures, swaps and options
  • Understand the Black-Scholes theory and formula intuitively, avoiding stochastic calculus
  • Learn the limitations of the Black-Scholes theory, and how it is used in practice
  • Python based tools are provided for computations with bonds, yield curves, and options

How it compares

Against the other 376 rated Udemy courses in Finance & Accounting on CourseDuck:

  • Rating4.7 out of 5higher than 87% of them
  • Reviews3,560#46 of 377 by number of reviews
  • Length27.3 hourslonger than 93% of them
  • Last updatedNovember 2023earlier than 69% of them

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Course Description

Student Testimonials:

  • This course offers an unreal value. Very rich content! This beats any financial course I've taken at my university. Looking forward to completing this course and using some of these skills in my career.--Steven


  • Cameron is an outstanding teacher. Thank you very much for making the most important and difficult Finance concepts so easy to understand. Looking forward to the further courses.--Gevorg


  • I got (am getting) some intuition about quant finance, not just leaning facts without really understanding the concepts.

    Cameron gives nice detailed answers to students questions.--Rich


Interested in a lucrative and rewarding position in quantitative finance?  Are you a quantitative professional working in finance or a technical field and want to bridge the gap and become a full on quant?  Then read on.

The role of a quantitative analyst in an investment bank, hedge fund, or financial company is an attractive career option for many quantitatively skilled professionals working in finance or other fields like data science, technology or engineering.  If this describes you, what you need to move to the next level is a gateway to the quantitative finance knowledge required for this role that builds on the technical foundations you have already mastered.


This course is designed to be exactly such a gateway into the quant world.  If you succeed in this course you will become a master of quantitative finance and the financial engineering of the most influential class of financial products that exist on markets today: derivatives.


About the instructor:

This course was created by a mathematician and financial quant holding a Ph.D. from the Courant Institute of Mathematical Sciences at NYU, and who earned his quant chops on Wall Street after an accomplished career as a theoretical materials scientist.


The focus of the course is thus very much on the practical skills someone working in the trenches in the real world of finance needs to have.  But since the course author also has 10 years of college teaching experience, it is taught with an eye to sound course structure and sensitivity to the concerns of students.


What you will learn:

Many finance students and professionals find derivatives the most challenging subject in their field.  But if you have a background in quantitative fields like statistics or computer science this course will show you that these most daunting of financial products are completely accessible to you.


Even if you are completely new to the world of finance, after completing this course you will have a deep mastery of the fundamental derivative structures traded on markets today: forwards, futures, swaps, and options.  But since this course is presented by a practitioner you will also learn how derivatives are actually used in the real world, as tools for both speculation and risk management.


The world of finance and markets is fast-paced and exciting, but can also be very intimidating.  In the heat of the moment, the markets are volatile and unpredictable, positions go south in unanticipated ways, you have traders yelling at you, you have computer software failing, you're relying on data you can't trust.  Keeping your head above water in this environment can be well nigh impossible.


You need a conceptual framework that allows you to keep above the fray and keep your wits about you.  In this course, my primary purpose is to convey that conceptual framework to my students.  The same conceptual framework that allowed me to survive and thrive in the pits of Wall Street during the dark days of the financial crisis.


Concerned that you may not have the required background to succeed in this course?  As long as you meet the formal prerequisites you need not be.  A quantitatively strong business background is more than enough to meet these requirements.  Any decent course in statistics and the basics of calculus is enough.  In truth, high school mathematics is all that is needed for 80-90% of the course material.  The most important requirement is simply to think analytically and logically.


Here is a sampling of some of the main topics that we'll cover on your journey into the quant profession:

  • Interest rate fundamentals

  • Periodic and continuous compounding

  • Discounted cash flow analysis

  • Bond analysis

  • The fundamentals of equity, currency, and commodity assets

  • Portfolio modelling

  • Long and short positions

  • The principle of arbitrage

  • The Law of One Price

  • Forwards, futures, and swaps

  • Risk management principles

  • Futures hedging

  • Stochastic processes

  • Time series concepts

  • The real statistics of asset prices: volatility clustering and autocorrelation

  • Fat-tailed distribution and their importance for financial assets

  • Brownian motion

  • The log-normal model of asset prices

  • Options

  • Put-call parity

  • The binomial model of option pricing

  • The Black-Scholes theory and formula

  • Option greeks: delta, gamma, and vega

  • Dynamic hedging

  • Volatility trading

  • Implied volatility

Includes Python tools

Python based tools are now included for computations with bonds, yield curves, and options.  All software that is part of this course is released under a permissive MIT license, so students are free to take these tools with them and use them in their future careers, include them in their own projects, whether open source or proprietary, anything you want!


So Sign Up Now!

Accelerate your finance career by taking this course, and advancing into quantitative finance.  With 23 hours of lectures and supplemental course materials including 10 problem sets and solutions, the course content is equivalent to a full semester college course, available for a fraction of that price, not to mention a 30 day money back guarantee.  You can't go wrong!

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Instructor Details

Cameron Connell

I hold a Ph.D. in mathematics from the Courant Institute of Mathematical Sciences at NYU.  I taught mathematics at UCLA and the New Jersey Institute of Technology.  I was a quantitative analyst on Wall Street through the financial crisis years.  I am now an entrepreneur working in financial and engineering technology with a focus on machine learning applications.

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Reviews

4.7

3,560 ratings on Udemy

Select a bar to show only those reviews.Select the bar again to show every rating.

By Anonymized User on 2/24/2023

Strongly recommended! A high quality solid step by step course. The instructor provides examples, the proper tools and detailed explanations walking us through the material. On this path he doesn't shy out in providing insight on what the mathematical machinery translates into once seen in practical lights, and at the same time the beauty of the math behind the machinery is well represented. Thanks for taking the time, making such a well prepared course.

By Nunu Mumu on 1/11/2023

This was an amazing course and well thought out. At first it seemed like it was a bit non-linear as I was going over some topics that I didn't understand at first how they are used (e.g., overnight index averages) but later I redid them and appreciated them much more because I understood how they fit in the big picture. One of the more important remarks is that we used the arbitrage principle so many times that I became extremely comfortable with it. The instructor answered ALL of my questions with great effort and wrote discussions and follow-ups. Kudos for that! Code snippets that the instructor provided were interesting and very helpful when one wants to play around with examples and learn by doing. I have strong quantitative skills but I am not a financial analyst by my background. However, after the course I really feel encouraged and knowledgeable about all the topics I work daily with. If I were to sum up the review TLDR: This course is not the ultimate material for getting guru-level of know-it-all skills but rather an excellent beginning for any practitioner in the field of quantitative finance! If I am lucky I will find more of courses like this one.

By Lingfei Tang on 12/5/2021

Overall very good material for some difficult contents. I was taking an MBA level derivatives class and couldn't understand futures and swaps. After going through relevant chapters from this course, I finally understood everything +: The instructor explains patiently and clearly, from beginner level contents all the way to the most difficult contents. Coding examples in Python helpful. -: Some materials are unnecessarily long for the course purposes, e.g. the fate of LIBOR. For FRA it might help to show payments on a timeline, because it is really hard to understand when and what happens. It also helps to clarify the dizzying conventions of LIBOR/federal funds rate quotation, when to use simple or annual compounding, when to use the 1 minus discount etc. Overall, I love the course and would recommend to anyone who want to study derivatives.

By Carlos Saenz de Pipaon on 7/25/2021

Great introductory course on the mathematics and intuitions behind financial derivatives. The instructor, Cameron, explains clearly and in detail the methods covered without overextending the mathematical theory behind, making it a very practical course. Cameron also takes great care in responding to questions quickly and thoroughly (I have yet to see an unanswered question), which is something I am sure all students appreciate.

By Jason Purcell on 4/29/2021

Above all, thorough. Learning quantitative finance is no easy thing, especially when your math skills are rusty, but the creator of this course went to great lengths to cover the basics and make clear all of the notations, as well as building the formulas from the ground up with arbitrage principles. It's much better to understand why things work and not just THAT they work, this is the course to get that knowledge. Helped me immensely in my Capital Markets job.

By Esuabom Dijemeni on 4/29/2021

The course 'Financial Derivatives: A Quantitative Finance View' is a detailed and deep dive into Financial Derivatives. The tutor explains the concept usually from a mathematical view point. The major drawback for me was the heavy mathematical explanation without showing real life examples. The course is geared for people with a strong mathematical background seeking to learn about Financial Derivatives less so for people with Engineering or Computer Science background. Overall, it is a great reference course for financial derivatives.

By Manuel Navarro García on 11/7/2020

I bought this course with no finance background at all and I wanted to learn the fundamentals of this science. At the end of this course, I can without any doubt that this went beyond my expectations. Cameron has proven to be an outstanding teacher, capable to explain abstract concepts and ideas, and provides clear and concrete examples that help to understand the theory. Five stars and waiting for another course with you, Cameron.

By Matthew Silver on 9/26/2020

Absolutely phenomenal! The lecturer is fantastic and balances a good level of explanation of the mathematics behind the financial markets along with practical examples and usages of the content. The instructor has both industry experience as well as teaching experience in a university setting, which is an excellent combination to have when communicating the material. As a holder of a Mathematics degree specializing in business and finance I found the content more valuable than any finance course I have ever taken. Special thanks to the instructor for making this available. I hope he makes additional courses so I can learn more from him.

By Ahmed Saeed on 7/8/2020

This is a wonderful course, the content is invaluable and worth gold. Dr. Connell is also a great teacher and he explains very complex subjects in a way that is very easy to understand. He breaks down the concepts down to its basic principals. I have a background in finance and IT and I have been working in this field for more than 10 years, and I find this course one of the best I ever had. If you are working in the financial and investment field, then this course is a must to take. I really can not recommend this course enough. I wish if Dr. Connell could make more courses so that we can learn more from him.

By Daniel S. Toma on 12/29/2019

I didn't know what to expect, so it's tough to gauge whether my expectations were exceeded or not met. But I'll say that it's one of the best ROI of all time. My background in finance is practically nil, let alone in derivatives (even less), so virtually all the material was new to me...and there was a lot of it, especially for just a few dollars. The instructor provided a lot of material, and talks it through. I would've preferred some more concrete examples, and I would've given 4 stars, except that the instructor is very responsive. I asked a lot of questions, and the longest I've waited for a response has been 2 or 3 days, which is truly remarkable. This responsiveness increased my rating to 4.5 stars

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Overall Score : 94 / 100