Derivatives

An online self-pace course powered by Fintelligence.

Learning content

The subject of derivatives explains the properties and types of derivatives as well as forward transactions. Basic options transactions are also presented and the factors determining the value of options are discussed.

In addition, the topic focuses on key option indicators and their interpretation.
Finally, various option strategies from the perspective of the investor as well as exotic options are presented. 


Target Audience

Asset managers, portfolio managers, investment analysts, traders, market specialists, treasury managers, client advisors, product specialists.


Learning agenda and time 

1. Basics (70 min)
2. Options (70 min)
3. Components of the option price (70 min)
4. Value of the option (60 min)
5. Option indicators (90 min)
6. Option strategies I (70 min)
7. Option strategies II (80 min)
8. Exotic options (60 min)
9. Learning control (70 min)

Learning goals for

'Basics'
When you have completed this module, you will be able to:

  • explain the term derivatives and the features of derivatives
  • name the types of derivatives
  • differentiate forward and futures transactions by options, futures and forwards
  • explain the potential base values of derivatives
  • identify the various trading possibilities for derivatives
  • explain the conditions for the client for the sale and purchase of derivatives

'Options'
When you have completed this module, you will:

  • be able to explain the process of a call option and a put option
  • be able to explain the difference between a short position and a long position with reference to options
  • be able to differentiate the four basic positions that purchaser and seller of an option can enter
  • be able to decide when an option should be exercised and when it should not,
  • be able to calculate the profits and losses of options
  • be able to explain the various trading alternatives for a purchaser or seller over the term of an option

'Components of the option price'
After completing this module, you can

  • explain which factors determine the price development of options
  • determine which factors are the most important for a call or put
  • explain how changes in these factors effect the option price

'Value of the option'
When you have completed this module, you will be able to

  • explain what the terms fair value and theoretical value of an option mean
  • explain how to calculate the fair option price using the Black-Scholes formula
  • calculate the fair price of an option using an Excel table or an option price calculator
  • explain the put-call parity of an option and implement considerations concerning the value generation of an option

'Option indicators'
After you have worked through this module, you will be able to

  • explain the differences between the static and dynamic indicators of options,
  • identify the most important indicators of options and their meaning,
  • describe the importance of dynamic indicators in the valuation of options,
  • value options using different dynamic indicators,
  • explain the most frequently used dynamic indicators by means of examples.

'Option strategies I'
In studying this module you will achieve the following learning goals:

  • You will be able to implement the four fundamental option transactions (purchase and sale of calls and puts) in accordance with your client’s wishes.
  • You will know the different investment motivations for carrying out transactions in options and can explain them to your clients.
  • You will be able to categorize option strategies on the basis of the price trends in the base value and the volatility trend in the base value.
  • You will be able to explain the important hedging strategies, such as a protective put and a long call hedge.
  • You will understand current strategies for return optimization, in particular covered and uncovered call writing, as well as naked put writing.

'Option strategies II'
When you have completed this module you will:

  • be able to implement the four fundamental option transactions (purchase or sale of calls and/or puts) in accordance with your client’s wishes
  • know about the different factors motivating investments in option transactions and you will be able to explain them to your clients 
  • be able to categorize option strategies according to the price and volatility trends in the base value
  • be able to describe how current return increasing strategies are implemented and explain their return risk features
  • understand the term leverage in the context of options
  • understand the implementation of options from the perspective of portfolio diversification

'Exotic options'
By studying this module, you can achieve the following learning objectives:

  • you will be able to explain the main features of the most common exotic options
  • you will be able to explain the risk-return characteristics of exotic options
  • you will understand the possibilities of using exotic options and be able to present them to a client


Method

Self-study via interactive e-learning module with discoverable content and videos plus final learning control via online test.

Learning control

Your online self-control test consists of 15 to 20 multiple choice questions. You will pass the test if you reach at least 70% of the maximum score.


Period of access
12 months from the registration and account creation.

Accreditation

You will receive CPD hours from CISI related to the number of training hours.

This online course is powered by       

Acquista