Options can be traced back many centuries but really began to take off after the Chicago Board Options Exchange (CBOE) began to list equity options in 1973. This, coupled with the introduction of the Black Scholes model, formed a foundation from which option trading really began to grow. Today, options are not only part of the equity landscape, but also play a role in other markets including foreign exchange, bonds, short term interest rates, and commodities. The language of options can often be quite challenging for the beginner. This course analyzes the fundamentals of options while tackling the challenge of different terms used in the markets. Profit and loss diagrams are used to reinforce the major option concepts. Pricing is explained in a very intuitive manner rather than complex mathematics. Participants will learn fundamental option strategies.
|“I enjoyed the strategies portions at the end. Putting together payoff tables and graphs was also helpful and a good refresher.”|
By the end of the session, participants will be able to:
- Describe the features and characteristics of options
- Explain the basics of pricing and describe the variables required for option pricing models
- Apply basic option strategies
- Identify the risks associated with options
Prerequisites: Suggested but not required
- Introduction to Capital/Financial Markets or equivalent knowledge
Program Level: Foundational
Target Audience: Anyone who wants to learn about options such as staff from operations, IT, legal, compliance, middle office, and HR, and regulators who work closely with various aspects of the equity, foreign exchange, fixed income, money markets or commodities.
Advance Preparation: None
Computers and Financial Calculators: Computers or tablets for viewing and accessing the electronic documents
Recommended CPE Credits: 2.4
Duration: 2 Hours