Course Code: 800

Duration: 1 day

Level: Basic

Fee: $795.00

Instructor: Douglas Carroll

CPE Credits: 7

Prerequisite: No Prerequisite Required

This one-day seminar provides a broad overview of all major types of derivative instruments: futures/forwards, options and swaps. Presentation will highlight the key characteristics and features as well as the risks, basic pricing concepts and trading applications for each type of derivative contract.

The program begins with an introduction to the basic features characteristic of all derivative contracts versus other types of financial instruments (securities or currencies) and the impact on trading applications and financial markets. This will be followed up with a detailed look at each major type of derivative in turn. For each type, the discussion will cover terms and definitions, contract features, rights/obligations of parties to the contract (long and short positions), risk exposure (gain/loss) profiles for long and short positions, trading and risk management applications.

The seminar would be useful for anyone whose duties entail some exposure to derivatives related business and would be especially helpful to those working in areas supporting derivatives trading or sales as well as middle and back office areas such as clearance and settlement, compliance, financial control, information technology, portfolio administration or marketing.

Introduction to Derivative Instruments

• Derivative terminology and definitions
• General characteristics of derivatives
• Derivatives compared to securities
• Risk management applications

Futures and Forward Contracts

• Terminology and definitions
• Exchange traded (listed) versus over-the-counter (OTC) contracts
• Types of contracts (equity, currency, energy, etc.)
• Forward pricing basics
• Trading and risk management applications

Options

• Terminology and definitions
• Option contract characteristics
• Buying calls and puts
• Writing (selling) calls and puts
• Combination trading strategies
• Option pricing basics

Swaps

• Terminology and definitions
• Swap contract characteristics
• Interest rate swap contract cash flows and risks
• Other types of swaps- equity, currency, commodity and credit/default
• Risk management applications