Derivative Products IIStudents drill down into the world of derivative products using computer software designed specifically for capital markets and derivatives training. |
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| Traders, sales and business development professionals, back
office staff, financial analysts, auditors and compliance staff. |
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| No advance preparation required. |
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Students will be able to:- Price a swap rate, build a swap curve and understand forward rates
- Explain how option pricing models work – and how to use them in practice
- Apply and use the products of caps, floors, collars & swaptions.
- Demonstrate how asset managers and the investment community are using the derivative markets today.
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| Derivatives 1 or equivalent knowledge, 2 - 3 years financial markets experience working for a bank or brokerage firm who is currently in the derivatives business. You will need a financial calculator with the following specific functions: 1.) The e(x) (the Exponent e) function; 2) The Ln (the Natural Logarithm) function
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YIELD CURVES- Different Types Of Yield Curves
- What is the par swap curve
- Par Swap Curve
- The Spot Curve (Term Structure Of Interest Rates)
CALCULATING SPOT RATES & FORWARD RATES- Calculating Spot Rates (Bootstrapping Method)
- Calculating Forward Rates
CALCULATING SWAP RATES- The Eurodollar Contract Specifications (Review)
- Discount Factors (Time Value of Money)
- Calculating Adjustments for Different Day Count Conventions
- Calculating Swap Rates Using The Eurodollar Futures
- Calculating The Net Present Value Of Swap
OPTIONS- Basics Of Option Contracts (Review)
- Inputs Into Option Pricing Model
- Volatility: Types Of Volatility & Probability
- Normal & Lognormal Distribution
- Option Pricing Models: Black-Scholes & Binomial Pricing Models
- Option Pricing Models & The Real World
- Managing Options Risk - The “Greeks”
INTEREST RATE OPTIONS- Define Caps, Floors, Collars & Swaptions (Review)
- Pricing Caps, Floors, Collars & Swaptions
- Applications of Caps, Floors, Collars & Swaptions
SWAP USERS IN TODAYS MARKETS- Uses By Corporations (Asset-Liability Management, Bond Issuance)
- Uses By Asset Managers (Leveraged And Non-Leveraged Uses)
- How a Corporation Might Use Swaps
- How an Unleveraged Asset Manager Might Use Swaps
- How a Hedge Fund Might Use Swaps
Equity Linked Notes- Define the structure of an equity linked note
- Examine a specific structure
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| Clients who register for this course will receive a complimentary 3 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process and are limited to one per client. For questions about your subscription, call 800-628-8088 or email uscirculation@ft.com. U.S. enrollees only. (All non-U.S. enrollees will receive a subscription to FT.com only.) Lunch included for all students taking day classes. |
Lunch included for all students taking day classes. |
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