Training Courses

Advanced Options Workshop

Category: Derivatives

Course level: Advanced

In house

This 3-hour workshop is designed to provide an in-depth explanation of OTC options, their pricing, factors affecting option prices and how they are used in institutional portfolios and retail funds.

It is assumed that all delegates have either attended, or are familiar with, the concepts in the Introduction to Futures, Introduction to OTC Derivatives, Introduction to Options and Advanced Swaps modules.

Case studies form an integral part of the course, to allow the delegates to consolidate the information and provide the basis for group discussions.

Objectives

By the end of the workshop, delegates will have a better understanding of:

  • the different models used to price options
  • pricing stock options
  • risk factors of trading options: the Greeks
  • exotic options

Length

3 hours

Course Content

Basic options

Options recap
Worked example: Buying a stock option

Option pricing models

Binomial model
Black-Scholes
Trinomial model

Stock options

Factors affecting option prices
Upper and lower bounds
Put-call parity
Early exercise of American options
Effect of dividends
Case study: Stock option pricing

The Greek letters

Delta
Theta
Gamma
Vega
Rho
Case Study: Hedging a portfolio with options

Exotic options

Binary options
Barrier options
Asian options

This course would be suitable for:

  • Client services and call centres
  • Finance and accounting
  • HR and training
  • Investment administration and operations
  • Investment professionals
  • IT and software developers
  • Legal & Compliance
  • New entrants
  • PR and recruitment firms
  • Risk management
  • Sales and marketing
  • Senior managers

This course would be suitable for these exams:

  • CFA - Level 2
  • CFA - Level 3
  • SII Certificate - Derivatives
  • SII Certificate - Financial Derivatives Module
  • SII Certificate - Securities & Financial Derivatives
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