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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

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Featured Pathways

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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

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Commodity Derivative Settlement

Commodity Derivative Settlement

Emma Jenkins

30 years: Commodities expert

In this video, Emma explains us the two settlement mechanisms for commodity derivatives, "physical-settlement" and "cash-settlement".  She also examines how well the price of a commonly traded commodity derivative, the commodity forward, converges to the price of the underlying commodity under each settlement mechanism.

In this video, Emma explains us the two settlement mechanisms for commodity derivatives, "physical-settlement" and "cash-settlement".  She also examines how well the price of a commonly traded commodity derivative, the commodity forward, converges to the price of the underlying commodity under each settlement mechanism.

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Commodity Derivative Settlement

8 mins 37 secs

Overview

Commodity derivatives can either be physically-settled or cash- (or financially-) settled. The concept of price convergence is explained. Physically-settled contracts generally exhibit the best price convergence. Cash-settled contracts use an index to calculate the final cash settlement amount and will only exhibit good price convergence to the underlying commodity if the index closely tracks the underlying market. Forward contracts are defined and used to demonstrate price convergence.

Key learning objectives:

  • Describe the main features of a forward contract.

  • What is price convergence?

  • Explain why the prices of physically-settled contracts converge to the price of the underlying commodity.

  • Why can price convergence be weaker for cash-settled contracts?

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Expert
Emma Jenkins

Emma Jenkins

Emma is an expert in commodities and is the founder of EJJ International Limited and delivers training courses in commodity markets. Emma is also a director at Cambridge Risk Limited where she works with clients regarding commodity related exposures. She had started her career in commodities at Credit Suisse in 1997, working within the derivatives team before going on to serve as a Director at Macquarie Group in a commodity sales role from 2002 to 2006.

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