Telephone: +44 (0)20 7920 9128
Email: [email protected]
Web: www.barbicanconsulting.co.uk
An Introduction to Options, (1.5 Days)
Options are widely used to hedge risk and structure products. This workshop is an introduction to the subject. It explains how options work, what they can be used for and the risks they can present. The option risks that arise from the firm's business will also be identified and explained. Prior options experience is not required however a basic understanding of dealing terms is assumed.
The workshop will cover:
Training will be in a workshop format. This will include a mixture of presentation and case study material. The course is designed for up to ten staff. Below is a summary of the workshop content which has been placed in a logical sequence and addresses the key topics.
What an option is including basic terminology
Payoffs at maturity
Workshop exercise: evaluating pay-off profiles and identifying risk & return.
Combining options
Workshop exercise: simple dealing strategies e.g. straddles, butterflies, strangles, call & put spreads.
How options are priced
Workshop exercise: participants will use a simple spreadsheet to price an option and understand what factors affect the price.
Volatility:
Caps & Floors
Swaptions
The Greeks
An introduction to what they are and what they are used for
Workshop exercise: Participants will update and develop their pricing spreadsheet to calculate the "Greeks".
Delta Hedging
Workshop exercise: Participants will have the opportunity to delta hedge a position and learn about the associated costs.
Options in the business
19th January 2012