DERIVATIVES
1 – 2 SEPTEMBER 2008 WONG LOKE LIM S$1,800 (BEFORE GST)
Introduction to the Derivatives Market
INTRODUCTION This 2-day course provides a basic understanding of the different types of derivative instruments and their applications. Participants will be exposed to common derivative terminologies, understand the use of derivatives in hedging and speculative purposes. Although the course will not cover valuation models for the different derivatives, conceptual explanations will be provided for participants to understand the sources of value. LEARNING OUTCOMES At the end of the programme, participants should be able to: Appreciate the types of derivatives & their associated risks Understand the fundamentals of options & some basic strategies involving options Apply some indicators in managing risks in options Appreciate some fundamentals concerning more exotic derivatives, futures & stock index futures Know the various products under equity derivatives Understand how FX exposure can be hedged with the use of options & futures Appreciate the various products under interest rate & credit derivatives & their respective applications Understand some examples of cross market applications WHO SHOULD ATTEND New people in corporate treasuries departments, finance department of MNCs including support staff dealing with treasury related products New sales people on treasury sales desk of bank treasury departments PRE-REQUISITE(S) Delegates are required to bring along a financial calculator for the program. COURSE OUTLINE Introduction to Derivatives What are Derivatives & what is their Future Potential in the Asian Markets? Types of Derivatives Risk associated with Derivatives Option Basics Different Types of Options Option Terminologies The Concept of Intrinsic Value vs. Time Value ITM, OTM & ATM Put – Call Parity Trading Volatility as an Asset Class Implied vs. Historical Volatility Options Arbitrage Introducing the ‘Greeks’ To Manage Options & Derivatives Risk Introducing the ‘Greeks’ Delta
DERIVATIVES
Gamma Theta Vega Dynamic Hedging using Delta & Gamma Option Strategies & Applications Basic Option Strategies Synthetic Options Straddles Strangles Advanced Trading Strategies Introduction to Exotic Derivatives Exotic Options – Moving Away from Plain Vanilla Brief Overview of the Different Common Exotic Options Knock-In & Knock-Out Options Reverse Knock-In & Knock-Out Options Introduction to Futures What are Futures Contracts Deliverable vs Cash Settlement Structure of the Market: the Exchange & Clearing House Trading and Common Terminologies Introduction to Stock Index Futures Pricing & Quotations Margin & Leverage Basis Risk Beta in Stock Index Futures Equity Derivatives Equity Futures Equity Index & Single Stock Futures Equity Swaps, Warants & Options Equity-Linked Notes Convertible Bonds Hedging FX Exposure with Options and Futures Introducing the Concept of Dynamic Hedging Assessing the benefits of a Hedging Strategy Break-even Analysis Justifying Options Hedging in a commercial environment Managing the risks of written options Interest Rate Derivatives Forward Rate Agreements (FRAs) Interest Rate Futures Short Term Interest Rate Futures Bond Futures Interest Rate Swap Futures Interest Rate Swaps (IRS Asset & Liability Swaps Interest Rate Options Caps, Floors and Collars Swaptions Bond Options
DERIVATIVES
Practical Cross-Market Applications Structured Notes / Products IR & Equity Markets Structures Introduction to Credit Derivatives What are credit derivatives Credit-linked notes Credit portfolio securitisation Collateralized Debt Obligations Course Summary & Conclusion