Intro to Principles of Options Derivatives

Description

FPI Approval No: FPI21070121
FPI 3.5 CPD points

Course Description:
Options are a unique derivative type that gives the buyer of the option a right to transact sometime in the future on a specific tradable asset without any obligation to do so. This means that the holder/buyer of the option contract will only act or exercise his right if the price of the underlying asset is at a level on a future date that is beneficial for the holder to act. It then stands to reason that the option writer has the exact opposite exposure to the buyer. This means that the writer will have an obligation to deliver on the option contract with no rights whatsoever (except receiving an initial option
premium).
Options are unique in hedging risk, trading effectively, and creating very specific payoff profiles. This course is designed to ensure a basic understanding and appreciation of this derivative type.

Course Overview:
• Over the Counter (OTC) Derivatives versus Exchange Traded Derivatives
• Background knowledge
• Calls and Puts:
• Types of Options
• Calculating the Option Premium
• Option Greeks
• In -, At – and Out the Money Options
• Option strategies and practical examples