DERIVATIVES TRAINING COURSES
Essentials of Options
The "Essentials of Options" training course delves into the complex world of options, a type of conditional derivative product. The course illuminates the complexity of options, which have payoffs dependent on scenarios related to the price evolution of various underlying assets like stocks, rates, commodities, and more. Participants will explore the multifaceted strategies and applications of options, including risk hedging, speculation, and arbitrage.
Options, affected by several variables known as "the Greeks" - including time passage (theta), volatility (Vega), strike price, and interest rate (rho) - are unpacked for thorough comprehension. The training is tailored to equip both traders interested in common strategies like covered calls and protective puts, and institutional managers seeking advanced hedging techniques, with practical skills and insights.
Ref: EOO-205
Learning Outcomes
- Discover the role and function of options
- Understanding the « Greeks »
- Understanding simple and complex strategies
- Know how to prince an option with a binomial tree, Black-Scholes Model and Monte Carlo simulation
- Understanding exotic options
Who Should Attend
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Fund manager
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Portfolio manager
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Wealth manager
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Management assistant
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Financial analyst
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Bank treasurer
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Corporate treasurer
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Financial engineer
Duration
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2 days (14 hours)
Price
- €2050 + VAT for one participant.
- €1650 + VAT each for a group of 2 or 3 participants, only with group registration.
- €1350 + 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. Generalities about options
- Definition
- Markets
- Participants
- Quiz
II. How options work
- Intrinsic value and time value
- « The greeks »: Vega, Theta, Rho, Delta, Gamma, Vanna, Volga
- Practical case:
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- Use of an option pricer
III. Option princing methods
- Binomial trees
- Black and Scholes model
- Monte-Carlo simulation
- Practical case:
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- Pricing of a call and a put with binomial trees and with the Black and Scholes model
IV. Vanilla options and traditional options strategies
- Call
- Put
- Selling naked options
- Covered call
- Protective put
- Practical case:
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- Identifying options strategies adapted to predefined objectives
V. Strategies combining multiple options
- Bull spread with call (debit spread)
- Bull spread with puts (credit spread)
- Bear spread with calls
- Bear spread with puts
- Calendar spread
- Straddle
- Strangle
- Quiz
VI. Exotic options
- Asian options
- Barrier options
- Lookback options
- Quiz
VII. Hedging strategies for an equity portfolio and managing exchange rate risk with options
- Delta hedging and gamma hedging
- Long and short reversal
- Long and short seagull
- Practical case:
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- Using currency options for hedging purpose
