In this lecture we will discuss the so-called "financial instruments of mass destructions" by Warren Buffet. We will be going through the creation of the CDS (Credit Default Swap) and how it contributed to the Financial Crisis of 2008.
We will be going through the basics of futures (margin mechanics and pricing) as well as forwards. We will then cap off the lecture with options.
This lecture will be presented by an Ex-Morgan Stanley and current hedge fund trader.