derivatives training courseS
Essentials of Derivatives
This course offers a systematic introduction to derivatives, covering fundamental principles and various applications such as speculation, hedging, and arbitrage.
Participants will learn about the mechanisms of derivative markets, including key concepts like margin, leverage, liquidity, and open interest.
The distinctions and nuances of exchange-traded and OTC derivatives will be covered, along with the crucial role of clearing houses.
Advanced topics include detailed approaches to pricing derivatives, with a focus on models like cost of carry, expectation theory, binomial tree, and Black-Scholes.
The course integrates risk management aspects, teaching students effective hedging and portfolio insurance strategies, reinforced with practical case studies for real-world application.
Ref: EOD-185
Learning Outcomes
- Understand the role and operation of derivative products
- Distinguish between firm derivatives and conditional derivatives
- Understand the difference between price and value
- Differentiate between a future and a forward
- Understand the functioning of an option and "the Greeks"
- Know the main uses of derivative products: hedging, speculation, and arbitrage
- Grasp the different strategies involving the use of derivative products
- Know the variables affecting the price of a derivative product
Who Should Attend
- Financial analysts
- Investment bankers
- Risk managers
- Finance students
- Professionals looking to enhance their understanding of financial derivatives
Duration
- 2 days (14 hours)
Price
- €1850 + VAT for one participant.
- €1480 + VAT each for a group of 2 or 3 participants, only with group registration.
- €1180 + VAT each for groups of more than 3, only with group registration.
Tailored Training Solutions
- We offer the option to collaboratively develop customized programs.
- If you don't find precisely what you're looking for, we are here to assist you in constructing the perfect solution for your organization.
- Any of our training courses can be delivered just for your team.
- We can also co-create bespoke programmes, so if you can't find exactly what you need, we can help you build the right solution for your organisation.
Training Agenda
I. Understanding Derivatives
- Principles of derivatives
- Types of Derivatives: forwards, futures, options, and swaps
- Applications: speculation, hedging, and arbitrage
- Practical Case:
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- Evaluate a corporation's use of derivatives and suggest improvements.
ΙΙ. Derivative Markets and Trading Mechanisms
1. Derivative Markets
- Exchange-traded and OTC derivatives
- The role of clearing houses
2. Trading Mechanisms
- Margin, Leverage, Liquidity, and Open Interest
- Practical Case:
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- Exploring Trading Mechanisms
ΙΙΙ. Pricing of Derivatives
1. Forward and Futures Pricing
- The no arbitrage framework
- The cost of carry model
2. Option Pricing
- Binomial tree
- Black-Scholes Model
- Practical Case:
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- Apply pricing models in a real scenario, evaluating their effectiveness.
IV. Risk Management using Derivatives
1. Hedging Strategies
- Overview of common hedging techniques
2. Portfolio Insurance
- Principles of portfolio insurance strategies
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Practical Case:
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- Critique a company’s risk management strategies using derivatives.
