Derivatives 1 & 2

Course details

The course introduces the history and development of the derivatives markets; it offers an in-depth analysis of Interest Rate Swaps, Swap Derivatives, Exotic Options and Valuation of Derivatives.  This course also introduces the ‘Greeks’ and its analysis and interpretation, techniques to design and structure option strategies using options or volatility

Objectives

On completion of this course participants will have been introduced to the main types of derivatives:

• Have covered interest rate swaps and swap derivatives
• Know management of interest and currency risk management
• Have received in-depth coverage of the concept of volatility
• Futures, FRAs and Options and their trading practices.
• Types of Derivatives
• Forward markets: meaning, types of forwards with special emphasis on FRAs
• Futures markets: meaning, types of futures, difference between forward and futures
• Options market: Calls & Puts and pay-offs diagrams
• Know market conventions and practice
• Swaps: Plain vanilla interest rate swaps and currency swaps calculate and interpret payments on each

Content Highlights

• Historical development of derivatives
• Futures markets, Forward rate agreements (FRAS)
• Interest rate Swaps
• The options market: calls & puts
• Basic option strategies
• Hedging FWD-FWD FX Swap with FRA
• Creating a FRA via an FX Swap
• FRA Strip Calculations
• Option markets and contracts
• Swap markets and contracts

Target Audience

Staff recently involved in, or about to become involved in, dealing with derivatives in their banks; Treasury Operations staff who need an overview of the instruments in order to understand the back office implications; Treasury Sales Desk Dealers; Investment Officers; Finance Mangers – Corporations; Corporate Dept. Staff who using derivatives to hedge their clients FX & Interest rate Risk; Risk Managers; Derivatives System Developers; Legal advisors and lawyers; Auditors