Course description
Financial Derivatives In-Depth
Untangling the complexities of forwards, options and swaps
Our two-day Financial Derivatives In-Depth course aims to explain the purpose, complexities and pricing behind the financial derivative contracts. The training will start with simple futures and forward products and then proceed to options theory, interest rate swap valuation and discussion of more exotic derivatives and structured products.
A basic understanding of financial markets and some knowledge of main asset classes is a prerequisite for this training.
Do you work at this organisation and want to update this page?
Is there out-of-date information about your organisation or courses published here? Fill out this form to get in touch with us.
Upcoming start dates
1 start date available
Suitability - Who should attend?
- Private traders and investors, looking to learn about financial derivatives.
- Professionals within the financial industry or those providing services to the financial sector.
- Professionals performing financial functions in non-financial industries, such as corporate treasury, accounting, and investor relations.
- Students, preparing for an upcoming internship or starting their careers in finance.
- Anyone working in or looking to understand financial derivatives and how they work.
Outcome / Qualification etc.
What will you learn?
By the end of the course, you will:
- Understand why there is a term structure of futures prices and what these prices imply.
- Discover how to exploit the arbitrage relationship between an asset’s price and its futures contract.
- Develop an intuitive and mathematical understanding about the Black-Scholes option pricing framework and apply it to price European option contacts.
- Learn how to calculate implied and realized volatilities.
- Become familiar with various exotic features of derivative contracts.
- Recognize various exposures of an option contract and how to quantitatively measure them.
- Gain insight into structured products such as Autocallables, Reverse Convertibles, Protected Participations and others.
- Study how Credit Default Swaps can be used to protect against bond defaults.
- Understand the interest rate swap markets and be able to apply various methods in their pricing.
- Become confident dealing with financial derivative products.
- And much more!
What will you get upon completion?
- Formal completion certificate.
- Course notes and materials.
- Follow-up support – ability to ask questions and seek further clarification, if needed.
- 20% OFF any future courses you wish to attend.
Training Course Content
Day 1:
- Overview of Financial Derivatives:
- Types of derivative products.
- Open interest and volume.
- Listed and OTC trading.
- Derivatives settlement procedures.
- Derivative users.
- Futures and Forwards:
- Mechanics of a forward contract.
- Differences between a future and a forward.
- Cost of carry and fair value.
- Contango and backwardation.
- Using futures for hedging, speculating and asset allocation.
- Options:
- Calls and puts.
- Selling and buying of options.
- In-the-money (ITM), At-the-money (ATM) and Out-of-the-money (OTM) options.
- Motivation behind using options.
- Put-call parity and option arbitrage.
- Realized volatility.
- Option pricing:
- Intrinsic and time value.
- Black-Scholes framework.
- Delta hedging.
- Pricing European and American options.
- Implied volatility and volatility surface.
- Option Risks and Greeks:
- Delta.
- Gamma.
- Vega.
- Rho.
- Theta.
- Hedging of the risks.
Day 2:
- Option Strategies:
- Straddles and strangles.
- Call and put spreads.
- Collar and risk-reversal.
- Calendar spread.
- Butterfly.
- Iron Condor.
- Light Exotic Options:
- Barrier options.
- Knock-in/out options.
- Digital and binary options.
- Quanto options.
- Asian contracts.
- Exotic Options and Structured Products:
- Options as a note contract.
- Autocallables.
- Reverse convertibles.
- Protected participation.
- Bonus certificate.
- Swaps:
- Mechanics of interest rate swaps.
- Motivation behind using interest rate swaps.
- Pricing Interest Rate Swaps.
- Role of the clearinghouse.
- Cross-currency swaps.
- Dividend and equity swaps.
- Credit default swaps (CDS).
- Mechanics of a CDS contract.
- Protection buyers and sellers.
- Credit events.
- Standardized premiums.
- Credit indices.
Request info
Ads