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 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.