Foundations of Derivatives

Description

The Foundations of Derivatives course de-mystifies the world of derivatives, explaining what derivatives are, and how they can be used by a wide range of users to solve real-world financial problems.

Learning Outcomes

By attending this course, you will:

• Review the range of derivative products, and the uses to which they can be put
• Explore how clients use derivatives to mitigate equity, interest rate, FX, and credit risks
• Examine how derivatives can also be used to enhance value and increment yield
• Gain first-hand experience of each topic through workshops and case studies

Who Should Attend

Anyone working in the financial markets.

Prerequisites

None

Seminar Content

Introduction to Derivatives

• What are derivatives?
• Derivative building blocks: forwards and futures, swaps, and options
• Derivatives as a hedging tool
• Derivatives as a speculative tool
• Derivatives as a structuring tool
• Derivatives across markets – FX, equities, rates, commodities, and credit

Forward Markets

• Why is there a need for forward contracts?
• Principles of forward pricing
• The FX forward market
• computer Using FX forwards to avoid currency risk

Financial Futures

• Definitions and terminology
• How futures differ from OTC products
• Standardisation of contracts
• Overview of interest-rate, bond, stock-index, and currency contracts
• Physical delivery vs. cash settlement
• How margining systems work
• A brief insight into cash and carry pricing
• computer Using bond and stock index futures for tactical asset allocation

Interest Rate, Currency, and Equity Swaps

• The concept of a swap
• Definitions and terminology
• Interest rate swaps
• Currency swaps
• Equity swaps
• Central counterparties
• Swap execution facilities (SEFs)
• Swap applications
• computer Fixing investment returns

Options

• Why options are different
• Options concepts and terminology
• The importance of time value
• Value and profit profiles
• An intuitive insight into option pricing
• What volatility means

Using Stock Options

• Bull and bear strategies
• Price enhancement
• Price protection
• computer Using options to enhance value

Credit Derivatives

• Principles and functions of credit derivatives
• The credit derivatives market
• Credit default swaps
• Market conventions
• CDS applications
• computer CDS application ideas

When and Where
   17 Jan 2025
   09:00-17:00
   New York
   Derivatives

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Other Dates and Locations
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