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Who should attend
Traders Market Makers Business Development Professionals Financial Officers Analysts and Advisors Auditors Compliance Professionals Risk Managers Controllers Wealth Management Professionals Private Bankers Accountants Asset Managers
About the course
This demanding curriculum will teach the principles and fundamentals of derivative portfolios and their associated risks. Participants will gain the knowledge to accurately predict the direction of price movement of underlying assets. Broaden and optimize your portfolio potential with a pragmatic approach to derivatives models and collective financial strategy, providing your clients with a more expansive selection of asset management services.
The Online Professional Certificate in Derivatives encompasses the following core courses:
• Derivative Instruments • Forwards and Futures • Options • Risk Management Using Derivatives • Equities • Fixed Income Securities • Asset Backed Securities
All courses must be completed within one year with a score of at least 70% in each module.
MODULE 1: DERIVATIVE INSTRUMENTS
- Basics of Forward and Futures
- Introduction to Options
- Trading Derivatives
- Introduction to Swapping
MODULE 2: FORWARDS AND FUTURES
- Introduction to Forwards and Futures
- Forward Rate Agreements
- ShortTerm Interest Rate Futures
- Note and Bond Futures
- Stock Index Futures
- Risks of Forwards and Futures
MODULE 3: OPTIONS
- Options Terminology
- Fundamentals of Options Products
- Option Combination Strategies
- Factors That Impact an Option's Value
- Pricing Options
- Options Sensitivities
MODULE 4: RISK MANAGEMENT USING DERIVATIVES
- Identifying Risks
- Managing Foreign Exchange Risk Using Derivatives
- Managing ShortDated Domestic Interest Rate Risk Using Derivatives
- Managing LongDated Domestic Interest Rate Risk Using Derivatives
- Managing Equity Risk Using Derivatives
MODULE 5: EQUITIES
- Common Stock
- Preferred Stocks
- Equity-Linked Issues
MODULE 6: FIXED INCOME SECURITIES
- Bonds and Their Features
- The Fixed Income Marketplace
- The Fixed Income Regulatory Environment
MODULE 7: ASSET BACKED SECURITIES
- Introduction to Asset-Backed Securities
- Structure and Rating of Asset-Backed Securities
- Major Sectors of the Asset-Backed Securities Market
- Pricing and Trading of Asset-Backed Securities
- The Future of the Asset-Backed Securities Market
What You Will Learn
- Establish an intricate understanding of forward and futures contracts.
- Identify methods for hedging and speculation.
- Determine the appropriate option vehicle for different investment goals.
- Differentiate between covered and uncovered positions
- Explain the relationship of the factors affecting the price of an option
- Identify margin requirements and recognize the structure of a swap agreement.
- List the credit risks involved in forwards and futures transactions.
- Identify key factors necessary to hedge with an FRA.
- Describe the forward curve and how it is constructed.
- Identify shortterm interest rate future specifications and applications.
- Recognize how strips are used to create synthetic futures rates and to price other derivative products.
- Identify the standard elements of note and bond futures.
- Define the function of the conversion factor.
- Recognize the methods for identifying Cheapest To Deliver bonds
- Classify the two measures of bond risk as they're related to hedging.
- Identify characteristics of stock index future contracts.
- Describe how to adjust the hedge ratio for beta.
- Calculate the time value of an option and identify instruments and applications.
- Pinpoint the uses of caps, floors, and collars in managing investment risk.
- Recognize ways that spreads can be used as combination strategies.
- Describe how different kinds of volatility plays make money.
- Identify the concept of putcall parity.
- Familiarize yourself with factors that impact option price and define volatility as it relates to the price of the underlying security.
- Identify the role of standard deviation in calculating annual volatility and describe the impact of the volatility of the underlying on the option premium.
- Recognize volatility indicators for using the BlackScholes options pricing model.
- Know the role of the Greeks, e.g., Delta and Gamma in defining an option's sensitivity to change, and Theta, Vega, Rho and Psi in defining an option's sensitivity to change.
- Identify the different types of risk (translation, transaction, contingent, and external risks)
- Explain the Quantification, Policy, Implementation and Monitoring steps of the Risk Cycle
- Identify the use of nondeliverable forward foreign exchange contracts in the management of FX risk
- Discuss the use of interest rate swaps in managing longdated domestic interest rate risk.
- Apply derivative techniques to manage translation risk.
- Identify elements of transaction risk and how best to manage it using derivatives.
- Recognize strategies for managing contingent risk using derivatives.
- Understand the corporate, municipal, and government bond markets, focusing on the concepts, functions, and operations of these markets.
- Explore the different ABS market segments, from the large, established segments like automobile loans, to emerging and subprime market segments.
- Identify the differences between the MBS and ABS markets.
- Explain the structure, sources of income and risks of credit card ABSs.
- Recognize the structure, risks and credit enhancements of Home Equity Loan (HEL) ABSs.
- Describe how Collateralized Debt Obligations (CDO) work.
- Define types, characteristics, and risks of common stock, preferred stock, and other equityrelated instruments such as rights, warrants, and convertible bonds.
- Read and comprehend stock option listings.
Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
We are happy to help you find a suitable online alternative.