Training Courses

Introduction to Options

Category: Derivatives

Course level: Introductory

In house

This 3-hour workshop is designed to provide an introduction to options and how they are used in institutional client portfolios and retail funds.

It is assumed that all delegates have attended, or are familiar with, the concepts in the Introduction to Futures and Introduction to OTC Derivatives workshops.

Case studies form an integral part of the workshop, 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:

  • different types of ETD options
  • OTC option contracts
  • caps and floors
  • swaptions
  • strategies

Length

3 hours

Course Content

Option basics

Buying call options
Selling call options
Buying put options
Selling put options

Factors affecting option prices

Intrinsic value
Time value
Volatility

ETD options

Single stock options
Index options
Option payoff diagrams
Uses of ETD options
Worked example: Buying a single stock option

OTC options

Caps, floors and collars
Swaptions
Worked example: Using caps to hedge interest rate exposure
Worked example: Using swaptions to hedge interest ate exposure

Option strategies

Bull call spread
Bear put spread
Straddle
Strangle

This course would be suitable for:

  • Client services and call centres
  • Finance and accounting
  • HR and training
  • Investment administration and operations
  • Investment professionals
  • Legal & Compliance
  • Risk management
  • Sales and marketing

This course would be suitable for these exams:

  • CFA - Level 1
  • CFA - Level 2
  • IMC
  • SII Certificate - Derivatives
  • SII Certificate - Financial Derivatives Module
  • SII Certificate - Securities & Financial Derivatives
  • SII Diploma - Financial Derivatives
  • UKSIP - Introduction to Investment
Contact Us