Exotic Options: Essentials, Applications & Valuations

In this one-day workshop, participants will learn the essentials of exotic option definitions, terminology, payoff profiles, applications and valuation. A review of the classification, typical users, benefits, risks and uses will be followed by a detailed study of four important types of options: Binary, Barrier, Asian, and Lookback options. The Binomial Pricing Model will be explained and the used by participants to price options.

Attendees must be Excel proficient.

No sessions currently available. Contact client services to get the next available date.
CPE CREDITS
7.0
Those seeking a deeper understanding of the essentials of complex options, their applications and pricing methodology.
No advance preparation required.
Students will be able to:
  • Understand the critical definitions and terminology associated with exotic options
  • Know the motivation for the development and use of those contracts
  • Explain practical applications for exotic options
  • Learn about the modeling essentials of binomial trees
  • Price specific exotic options using the Binomial Pricing Model
Attendees must have a solid knowledge of standard European and American-style options, of cash flow mathematics, and of Excel.
"The class offered a great overview of introductory material."
"The instructor's knowledge of exotic options was thorough."
"Great introduction to Exotic Options!"
Morning Session: Standard and Exotic Options
  • Standard options review: Introduction and review of standard options pricing and Greek alphabet
  • Binary options and Barrier options: description, terminology, payoff equations, hedging and applications

Afternoon Session: Exotic Options and Their Pricing

  • Asian and Lookback options: description, terminology, payoff equations, hedging and applications
  • Exotic option pricing model
  • Option pricing exercises

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.