Participants will be equipped to decipher the derivatives in terms of its risk and valuation to be able express views in the market with more appropriate tool.
Participants will attain conceptual clarity on how derivatives are generally valued and what are the price derivers.
A deeper understanding on the approach to construct structured derivative products. Familiarise with various derivative tools that can be sued for managing market risks effectively.
Target audience
Junior and mid-level staff in financial market related roles
Traders and risk managers in funds, banks, corporates
Course Content
Day 1
Session 1
Financial Markets Price discovery process,
Financial Derivatives – Brushing up of basic concepts
Forward Contracts- Conceptual understanding
Covered interest rate parity theory
Session 2
Options -Types,
application, and conceptual understanding,
Option price drivers,
Intuitive understanding of option pricing
Session 3
Structured Options -Approach to structuring of options products
Commonly used option structures and trading strategies
Portfolio risk measures and management
Day 2
Session 4
Exotic Options -Exotic options globally used – discussion on structure, payoff, application,
Common structures for discussion– Barrier options
Target Redemption Forwards
Dissecting option pricing of sample structures and understanding with option pricer
Session 5
Discussion on Fixed Income markets, Yield Curve, benchmarks, convention, etc.,
Swaps -Introduction & understanding
Interest Rate Swaps,
Forward Rate Agreements
Session 6
Cross Currency Swaps – Application
Understanding market price discovery process and dynamics
Principle Only Swaps
Deriving Long Term Forward Premium from swap curve
Trainer Profile
Trainer is a financial market expert and has rich experience in foreign exchange function. He has held key roles including Treasury Sales , FX flow business for India Head of Business management and strategy for Treasury sales function, and Head of Treasury sales business for South Asia for commercial segment.
