Background
Many managers and staff who are not investment specialists, find themselves in increasing contact with Futures and Options. Since these products are unusual and can be complex, the result is often confusion and possibly expensive errors.
This one day course provides a comprehensive introduction to Traded Options. No prior knowledge is assumed but delegates should have a general awareness of Fixed Income Investments and Equities. In addition delegates should have a basic knowledge of Futures. If this is lacking our Futures Primer course, presented the previous day, is recommended (see details of this course).
Delegates
- Brokers and Dealers
- Fund Management Executives and Support Staff
- Operations Back Office and Mid Office Executives and Staff
- Custodians
- Internal and External Auditors and Accountants (CPD credit)
- IT Staff involved with these Products
- Lawyers, Compliance Officers and Regulators (CPD credit)
Content
What Are Options?
Futures v Options contrasted.
Background and brief history. Main markets.
Calls and Puts explained.
Terminology and Types: Bonds, Interest Rate, Index, Stock, Currency.
Pricing details, Intrinsic and Time values
Variables affecting Options prices. pricing models outlined.
Graphical demonstration of Profit and Loss.
Profit and Loss calculation. Examples. Exercises.
When is Margin REQUIRED? Explanation of Initial and Variation.
Covered v Naked writing explained
Trading methods: Floor and Electronic trading.
Use of Options in hedging. Example. Exercise.
Use of Options in asset allocation. Example. Exercise.
Use of Options to generate income. Example. Exercise.
Use of Options in Funds anticipation. Example.
Role of Clearing House and Settlement Process.
Example Strategies using Options (given time)
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