This course will guide you in understanding the employment of option strategies which are used worldwide to not only minimize portfolio risk but also to maximize the returns on the investments.

US$73 per 365 days

 

What are Equity Derivatives:

Equity derivatives are a class of financial instruments whose value is based on the evolution of the underlying cash securities (equities and stock indexes). Investors can use equity derivatives to achieve goals such as yield enhancement, portfolio diversification, and the creation of synthetic exposures.

The equity derivatives market is characterized by factors such as the sheer diversity of instruments, differences between underlying instruments, and geographic idiosyncrasies around the world. This course explains the basics of these derivatives and examines in detail some of the more popular structures. Valuation and pricing methods for these instruments are also covered.

Why it is important:

The equity derivatives market is huge – at the end of June 2012, an estimated USD 6.3 trillion in notional amounts was outstanding in the OTC equity derivatives market. This made it the third-largest OTC derivatives market (after interest rate and currency derivatives).

Products traded in the equity derivatives market range from basic instruments such as options and warrants to more complex structures such as equity swaps and contingent convertibles (CoCos).

What will you learn:

  1. Basics of Contracts for Difference (CFDs).
  2. Contracts for Difference (CFDs) – Trading.
  3. Equity Index Futures – Basics and uses.
  4. Convertible Bonds.
  5. Contingent Convertibles (CoCos).
  6. Equity Swaps – Basics & Application.
  7. Warrants.
  8. Traditional Warrants – Benefits and Drawbacks.
  9. Covered Warrants.
  10. Warrants and Other Derivatives.
  11. Warrant Valuation: Factors Affecting Warrant Prices Warrant Valuation: Intrinsic Value and Time Value.
  12. Warrant Valuation: Pricing Traditional and Covered Warrants Warrant Price Sensitivities: Delta and Gamma.
  13. Warrant Price Sensitivities: Theta, Vega, and Rho.
  14. Equity Swaps.

Target audience:

Recruits to banking, trainee dealers/traders, operations and support staff, sales and marketing executives, compliance, and regulatory staff.

Curriculum:

  1. Contracts for Difference (CFDs): Basics
  2. Contracts for Difference (CFDs) Trading
  3. Equity Index Futures Basics
  4. Equity Index Options
  5. Convertible Bonds Basics
  6. Convertible Bonds Calculations
  7. Convertible Bond Provisions (Part 1)
  8. Convertible Bond Provisions (Part 2)
  9. Convertible Bonds Variations
  10. Convertible Bonds Pricing Factors
  11. Convertible Bonds Valuation
  12. Convertible Bonds Price Sensitivity
  13. Contingent Convertibles (CoCos): Basics
  14. Contingent Convertibles (CoCos) Trigger Points
  15. Contingent Convertibles (CoCos) Investors and Issuers
  16. Contingent Convertibles (CoCos) Regulatory Issues
  17. Equity Swaps Basics
  18. Equity Swaps Applications
  19. Warrants Basics
  20. Traditional Warrants Basics
  21. Traditional Warrants Benefits and Drawbacks
  22. Covered Warrants
  23. Warrants and Other Derivatives
  24. Warrant Valuation Factors Affecting Warrant Prices
  25. Warrant Valuation Intrinsic Value and Time Value
  26. Warrant Valuation Pricing Traditional and Covered Warrants
  27. Warrant Price Sensitivities Delta and Gamma
  28. Warrant Price Sensitivities Theta, Vega, and Rho
  29. Equity Swaps Payment Calculations
  30. Equity Swaps Swap Dealers and Pricing
  31. Equity Swaps Risks and Variations

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