Derivative Products I

Students explore the fundamental characteristics, features, and applications of derivative products. Particular attention is paid to options pricing and the examination of the Black-Scholes and Binomial models.

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Target Audience

Traders, sales and business development professionals, back office staff, financial analysts, auditors and compliance staff.

Learning Objectives

After completing this module, you'll be able to:

  • Identify who the market participants are that presently use derivative products.
  • Identify what markets are derivative products (futures, options and swaps) and on what underlying assets these derivatives are based.
  • Explain how these various market participants use derivative products and for what purpose.
  • Demonstrate how to price futures contracts.

Course Syllabus

Futures and Forwards

  • Evolution and History
  • Standardized Contracts
  • Margin and Daily Settlement
  • Clearing Firms and Their Function
  • Benefits Of Exchange-Traded Futures
  • Applications Of Futures And Forwards
  • Differences Between Futures & Forwards
  • Time Value of Money

Eurodollar Futures

  • Contract Specifications
  • The Eurodollar Strip
  • Value of a Basis Point – Futures versus Deposits

 

Eurodollar Contract

  • Define an FRA
  • How they are priced
  • Applications of FRA

Interest Rate Swaps

  • History and Evolution
  • Characteristics and Terms of Swaps
  • Fundamentals Of Pricing Swaps
  • Applications of Interest Rate Swaps

 

Options, Caps, Floors & Swaptions

  • History and Evolution Of Options Market
  • Option Terminology
  • Risk/Reward - Payoff Profiles & Breakevens
  • Basic Characteristics Of Option Contracts
  • Basic Characteristics Of Caps & Floors
  • Basic Characteristics Of Swaptions
  • Factors Of Options Pricing

 

SESSIONS AVAILABLE


New York - Soho

 Wed 1 Oct 2014-Wed 1 Oct 2014
     9:00 - 4:30

 Thu 15 May 2014-Thu 15 May 2014
     9:00 - 4:30


COURSE INFORMATION

Professional Credits:
CPE Credits 7
Price
$1,575 USD
Duration 1 Day
Advance Preparation
No advance preparation required.
Prerequisites
Fundamentals of the Securities Industry or equivalent knowledge, 2 - 3 years financial markets experience working for a bank or brokerage firm who is currently in the derivatives business. You will need a financial calculator with the following specific functions: 1.) The e(x) (the Exponent e) function; 2) The Ln (the Natural Logarithm) function
Instructional Method
Classroom
Level
Basic