Equity Derivatives - Evening

Equity derivatives have been one of the hottest areas of growth in a market environment of rapid financial innovation. A crucial driver of the vast increase in the use of equity derivatives has been the pace of innovation, with numerous diverse structures being developed to suit particular needs of many different types of users. The Equity Derivatives seminar investigates each of the widely used quity derivative products. This program is designed to familiarize participants with the structures of the important equity derivatives as well as the analytic tools and techniques used to evaluate and price them.

The program begins with a survey of the two basic types of derivative contracts: first futures/forward contracts and then options. These will be explored in greater detail as they are the building blocks of all the more complex derivative instruments. Sessions will address contract struture and terminology, but focus on valuation, risk/return characteristics and trading/risk management applications. The program will then proceed with a similar approach applied to a range of derivative contracts to include: swaps, caps and floors, swaptions, and other exotic options.

04-Apr-2012 -- 09-May-2012New YorkUSD$1875
NY Institute of Finance - Midtown5:45pm - 8:15pm Instructional Method:
Group-Live
Instructor(s): [ Douglas Carroll; ] Wed Level: Intermediate

CPE CREDITS
15.0
Traders, sales staff, back office professionals, financial analysts, cash/money managers, auditors, and compliance staff.
No advance preparation required.
Students will be able to:
  • Discuss the use of equity futures and forwards in managing the risk of trading positions or portfolios
  • Describe options pricing models, model valuation versus market price and applications to option trading
  • Explain the greeks (delta, gamma, theta, rho and vega) as well as their use in analyzing and quantifying risk of option trading strategies
  • Describe the structure of equity swaps and their advantages in altering equity portfolio exposures/allocations relative to trading portfolio securities
None
"The instructor was very knowledgeable."
"This was a great class. It was a pleasure to have taken it!"
SESSION ONE
Equity Derivatives: An Introduction
  • Overall Objectives
  • Equity Indexes
  • Equity Futures
  • Definition
  • Pricing
  • Risks
  • Stock Index Arbitrage

SESSION TWO
Equity Swaps
  • Definition
  • Applications
  • Cash flows
  • Pricing

SESSION THREE
Options Fundamentals: Objectives
  • Call Options
  • Underlying Payoff Profile
  • Terminology
  • Value Profile
  • Intrinsic Value
  • Put Options
  • Underlying Payoff Profile
  • Value Profile
  • Intrinsic Value
  • More Terminology
  • Basic Option Profile
  • Why Use Options
  • Benefits
  • Disadvantages

SESSION FOUR
Option Pricing
  • Probability
  • Binomial Model
  • Average and Volatility
  • Normal Distributions
  • Black Scholes Intuitive
  • Black Scholes
  • Volatility and Black Scholes
  • Implied Vols
  • Price Relatives

Hedging

  • Hedge Ratio
  • Portfolio Beta

SESSION FIVE
Index Replication
  • Passive vs. Active
  • Asset Allocation Strategies
  • Program Trading

Equity Linked Notes

    Leaps

    • Leaps vs. Short Term Options
    • Applications

    Warrants

    • Definition
    • Applications
    • Valuation

SESSION SIX
Percs

    Convertible Bonds

    • Definition
    • Pricing

    Exotic Options

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.