Certificate in Derivatives

Options Building on the Derivative Instruments series, this intensive intermediate level series explores the different types of option products, including options on equities, indexes, futures, foreign exchange and interest rates. It illustrates option combination trading strategies, including horizontal and vertical spreads and volatility plays. Participants explore the various factors that have an impact on option pricing, and learn how to apply the Binomial and Black–Scholes option pricing models. The series also demonstrates trading strategies and portfolio management techniques utilizing the Greeks. Who should take this course:   Floor and compliance personnel, trade support staff seeking advancement and marketing staff. Prerequisites:   Derivative Instruments or equivalent level of knowledge Training Hours/CPE Credits:   7     Modules Options Terminology       Module Code :  derv_3008 Level :  Basic Training Hours/ CPE Credits :  1 Module Description: This module provides a review of basic options concepts and terminology. Learning Objectives: After completing this module, you'll be able to: Identify the types of options and the risks associated with them Describe the value of an option at expiration Recognize the concept of "moneyness" Calculate the time value of an option Fundamentals of Options Products       Module Code :  derv_3009 Level :  Basic Training Hours/ CPE Credits :  1 Module Description: This module discusses stock options, index options and interest rate options. It will also briefly cover about options on futures, interest bearing securities and currencies. Learning Objectives: After completing this module, you'll be able to: Recognize applications for stock options. Identify index options and how they are used. Discuss interest rate options and their role in investment strategies. Recognize the uses of caps, floors, and collars in managing investment risk. Option Combination Strategies       Module Code :  derv_3010 Level :  Intermediate Training Hours/ CPE Credits :  1 Module Description: This module will show you some intricate strategies that allow investors to speculate on the direction of prices or volatility, or to hedge exposures, by combining several options together, or by combining an option with an underlying security. These combination strategies fall into three main categories: spread positions, portfolio management strategies, and volatility plays. Learning Objectives: After completing this module, you'll be able to: Recognize ways that spreads can be used as combination strategies. Identify traits of specific portfolio management strategies. Identify how different kinds of volatility plays make money. Factors That Impact an Option's Value       Module Code :  derv_1029 Level :  Intermediate Training Hours/ CPE Credits :  1 Module Description: Various mathematical techniques can be used to determine the appropriate price of an option given a set of prevailing market factors. This module begins with a discussion of put-call parity, which will show you the relationship between the prices of puts and calls. Then, it will look at a simple option-pricing model based on the concept of expected values. Finally, it will introduce single- and multi-period binomial lattice models. Learning Objectives: After completing this module, you'll be able to: Identify the concept of put-call parity Describe the expected value pricing model and its uses Recognize the use of the binomial lattice model for option pricing Identify factors that impact option price Define volatility as it relates to the price of the underlying security Pricing Options       Module Code :  derv_1030 Level :  Intermediate Training Hours/ CPE Credits :  2 Module Description: This module will explore standard deviation and volatility in detail. Then how to use volatility to model options prices in a binomial model. Finally, how the binomial model actually converges with the famous Black-Scholes model for valuing options. Learning Objectives: After completing this module, you'll be able to: Identify the role of standard deviation in calculating annual volatility Describe the impact of the volatility of the underlying on the option premium Identify the key factors affecting how options are priced Recognize volatility indicators for using the Black-Scholes options pricing model Option Sensitivities       Module Code :  derv_1031 Level :  Intermediate Training Hours/ CPE Credits :  1 Module Description: This module looks at some measures that help describe an option's sensitivity to the various factors that determine pricing. They are: Delta, Gamma, Theta, Vega, Rho and Psi — better known as the Greeks. Learning Objectives: After completing this module, you'll be able to: Recognize each of the Greeks Identify the role of Delta and Gamma in defining an option's sensitivity to change Identify the role of Theta, Vega, Rho and Psi in defining an option's sensitivity to change