Corporate Solutions

Classroom - list of courses

An Introduction to the Derivatives Markets


An overview of the Derivatives Markets

• Exchange Traded vs Over the Counter instruments
• Financial characteristics; Cash vs Physical settlement
• Vanilla vs Exotic derivatives
• Inherent risks with Derivatives
• Who uses Derivatives & why?

Equity Options

• Options defined & terminology
• The asymmetry of risk; Intrinsic vs Time Value
• Call & Put Option Pay-off profiles
• In, At & Out of the Money Options
• Using Options – for speculation or Portfolio enhancement? Trading strategies
• Stock Index Options
Case Study – A look at UK Equity Options in practice

An overview of the Swaps Market

• Equity Index Swaps – A tool for Equity Fund Managers
• Total Return Swaps
• Credit Default Swaps – A tool for Bond Fund Managers
• Interest Rate Swaps – A tool for Corporates
Case Study – CDS pricing across the Sovereign Debt Markets

An overview of the Futures Markets

• Key features of Futures contracts
• Initial & Variation Margin payments; Leverage
• Function of the Exchange Clearing House
• Short Term Interest Rate Futures
• Equity Index Futures – The Index multiplier; Hedging requirements
• Commodity Futures
Film – Trading Commodity Futures in practice – Chicago Mercantile Exchange