SEMINAR LENGTH
2 or 3 days, depending on objectives and content
SUBJECT FOCUS AND CONTENT
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Option basics: the language of options
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Payoff diagrams and no-arbitrage boundary conditions
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Option positions and combinations
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Option valuation techniques
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Option pricing sensitivities and risks
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Understanding volatility and trading options
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Selling option products to bank clients
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Managing an option portfolio
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Exotic options overview
TARGET AUDIENCE
The target audience comprises a wide variety of line professionals and support staff who need to broaden their knowledge of options. Participants should have a basic understanding of the workings of the money markets and foreign exchange markets.
PARTICIPANT OBJECTIVES
This workshop is designed to give participants a solid understanding of options, starting from basics to the intermediate-level complexities in managing an option portfolio. The workshop focuses on customer uses of options, and participants will become comfortable explaining options and option-based strategies to others. This workshop is not designed as an overly technical or academic program but rather as a practical guide for a variety of professionals that will need to talk either internally or externally about options.
This workshop will enable participants to:
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Understand the terminology of the options market
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Identify and effectively communicate option solutions and ideas to clients
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Determine the net position when options are combined with other options and/or underlying risk positions
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Identify the variables that influence option pricing and recognize the impact of changes in those factors
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Understand the concept of volatility
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Describe how a trader manages an option book and the associated risks
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Describe the characteristics of some important exotic options
METHODOLOGY
In this workshop, the instructors act primarily as facilitators while participants learn about options and their applications through a series of active learning exercises. These exercises build from option basics and incorporate a variety of learning methodologies including brief lectures, extensive spreadsheets, electronic cases, discussions and role plays.