EncartaLabs

Futures and Options

( Duration: 1 Day )

The Futures & Options training course will introduce derivatives in general, demonstrate the common features of derivatives and how they differ from other sorts of financial instruments. The course will then segue into a detailed discussion - first on Futures contracts and then ultimately on Options contracts. Key characteristics will be identified, and contract features, pricing, applications, risk management, and hedging will be discussed.

By attending Futures & Options workshop, delegates will learn:

  • To gain a general overview of derivatives
  • To define what derivatives are and differentiate between different types
  • Features of futures contracts, as well as trading and cash flows
  • Fundamentals of options, their contract features, and pricing basics
  • Futures contract pricing

  • Basic maths knowledge

COURSE AGENDA

1

Introduction to Derivatives

  • Types of Derivative Contracts and Their Characteristics
  • Derivatives Compared to Securities
  • Derivatives Defined
2

Introduction to Futures Contracts

  • Futures Terminology and Contract Features
  • Physical Delivery to Close a Futures Position
  • Cash Settlement, OTC Derivatives
  • Futures Clearinghouse and Third Party Contracts
  • Futures Margins and Futures Contracts
3

Futures Contracts Trading and Cash Flows

  • Clearinghouse and Futures Trades
  • Comparing Futures Versus Underlying Positions
  • Futures Positon Cash Flows and Hedging with Futures
  • Futures Positions: Risk and the Cost Taking Position
4

Futures Pricing

  • Cost of Carry/Carrying Charges
  • Cost of Carry Pricing and The Forward Pricing Curve
5

Introduction to Options

  • Option Fundamentals: Contract Features and Terminology
  • Option Contract Example: Long Call Positions
  • Option Pricing Basics
  • Time Value, Instrinsic Value and Moniness
  • Short Option Positions
  • Investment Characteristic of Options
  • Overview of Long Put, Short Call and Short Put Positions
6

Option Pricing and Applications

  • Option Pricing and Sensitivities (Option "Greeks")
  • Option Deltas
  • Delta Hedging
  • Delta Neutral Hedging Example
  • Black-Scholes and Option Volatility (Vega)
  • Implied Volatility and Volatility Trading

Encarta Labs Advantage

  • One Stop Corporate Training Solution Providers for over 4,000 Modules on a variety of subjects
  • All courses are delivered by Industry Veterans
  • Get jumpstarted from newbie to production ready in a matter of few days
  • Trained more than 50,000 Corporate executives across the Globe
  • All our trainings are conducted in workshop mode with more focus on hands-on sessions

View our other course offerings by visiting http://encartalabs.com/course-catalogue-all.php

Contact us for delivering this course as a public/open-house workshop/online training for a group of 10+ candidates.

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