the Financial Derivatives Course introduces you to the complex world of forwards, futures, swaps and options. This three-day course will provide you with deep understanding of the derivatives market for both OTC and exchange-traded instruments. It explains how banks use derivatives to manage their market risk exposures and to provide it to their customers as hedging and investment tools.
..Explain the characteristics of derivatives
.Distinguish between forwards, futures, swaps and options and why each category is used
..Differentiate between OTC and exchange traded instruments
..Calculate forward pricing and valuation
..Understand leverage trading mechanism
..Identify variables that influence option pricing
..Using Bloomberg and Reuters to calculate derivatives prices
..Making synthetic derivative position
..Profit from risk-free arbitrage opportunity
..Structure basic option strategy for specific hedging and investment needs
..Introduction to Derivatives & Derivative Types
..Practical uses of derivatives
..Understanding typical corporate FX exposures
. .Managing FX exposures with FX forward contracts.
.. Leveraged trading
..Creating synthetic positions
..Exchange traded versus over-the-counter (OTC) derivative instruments
..Derivatives risks and how they can be managed
..Termination of contracts in the event of insolvency: close-out netting
..Interest rate swap (IRS) mechanics
..Relationship between swaps, forward rates.
..Understanding he role of the cross-currency basis swap
.. Trading & Hedging Strategies with Equity Options
..Understanding how to construct payoff profiles for combinations of options and the underlying
..What drives the price of the option: Understanding the model inputs
..Approaches to option valuation: hedge approach v probabilistic approach
..Option risk measures: defining the “Greek” sensitivities
..Bank Applications of Derivatives.
..Tailored solutions: Creating zero premium products with option combinations
..Primary motivations for structuring
..Banks employees who work in treasury, risk, investment and finance departments.
..Attend a training course