Fundamentalsof

Derivatives

30Nov2Dec2015

HongKong,HongKong

US$4,990

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ThisisModuleOneofDerivativesSchool.'FundamentalsofDerivatives'isacomprehensiveoverviewofthe
majorclassesofderivatives,distinguishingbetweenlinearandnonlinearderivatives.SaveUS$1,690for
registeringthiscouseandBankApplicationsofDerivatives!Justcontactusat
admin@euromoneylearningsolutions.comtoregisterandenjoythisspecialoffer.*FTSEligibleFinancial
TrainingSchemeformoreinformationclickonthe"CourseDescription"beloworemailus

CourseInstructor

FormerStrategicDevelopmentManagerattheLondonInternationalFinancialFuturesExchange(LIFFE)

CourseDescription

FTSEligibleFinancialTrainingSchemeforSingaporeancitizensandPRs
only(moreinformation)

Courseoverview

Module1:FundamentalsofDerivatives(Day1Day3)isacomprehensiveoverviewofthemajorclassesof
derivatives,distinguishingbetweenlinearandnonlinearderivatives.

Summaryofcoursecontent

l Howandwhyarederivativesusedinpractice?
l ThedifferencebetweenexchangetradedandOTCderivatives?
l Clearingproceduresforexchangetradedderivatives
l Understandingtheprincipalmoneymarketderivativesandhowtheyareusedtomanageinterestraterisk
l Swapsandhowbanksandotherinstitutionsusethem
l PrimaonoptionsandtheirapplicationinthemanagementofFXrisk
l Howderivativesareembeddedincommonstructurestoprovideinvestorswithattractiverisk/reward
profiles

Methodology

Thismodularcourseusesinteractivelectures,workedexamplesandrealworldcasestudiesshowingindetail
howtheproductsareusedandwhy.Itshowstheproductsinahighlypracticalway,withoutover
complication,withclearillustrationsofeachsothatyoumayreadilyunderstandthemandtherolethebank
plays.

YoucanattendbothmodulesofthisDerivativesSchooltoenjoymostbenefitorpickfromthefollowing
modules.

Module1:FundamentalsofDerivatives

Module2:BankApplicationsofDerivatives

SaveUS$1,690forregisteringbothmodules!

FTSEligible

ThisprogrammeisapprovedforlistingontheFinancialTrainingScheme(FTS)ProgrammeDirectoryandis
eligibleforFTSclaimssubjecttoalleligibilitycriteriabeingmet.

Pleasenotethatinnowaydoesthisrepresentanendorsementofthequalityofthetrainingproviderand
programme.Participantsareadvisedtoassessthesuitabilityoftheprogrammeanditsrelevanceto
participants'businessactivitiesorjobroles.

TheFTSisavailabletoeligibleentities,ata50%fundinglevelofprogrammefees,subjecttoacapof
$2,000/participant/programmeandalleligibilitycriteriabeingmet.FTSclaimsmayonlybemadefor
programmeslistedontheFTSProgrammeDirectorywithspecifiedvalidityperiod.Pleasereferto
www.ibf.org.sgformoreinformation.

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PleasenotethatthiscourseisonlyeligibleforFTSFundingwhenregisteringforallmodules.

Agenda

*FTSEligibleFinancialTrainingSchemeforSingaporeancitizensandPRsonly(moreinformation)

Module1

FUNDAMENTALSOFDERIVATIVES

Day1:Introductiontoderivativesandderivativetypes

Introductiontoderivatives

l Whatisaderivative?
l TheequityCFDmarketexplained
l Whyisthereamarketforderivatives?
l Attributesofderivatives

l Practicalusesofderivatives

l Leveragedtrading

l Riskmanagementapplications

l Creatingsyntheticpositions

l Advantagesofderivativeinstrumentsovercashinstruments

Thetrading,dealingandclearingenvironment

l OTCvs.Exchangetradedproducts
l Recentdevelopments

l Brokingvs.Marketmaking
l Tradeexecution
l Ordervs.Quotedrivenmarkets

l Marketordertypes

l Placingordersinanelectronictradingplatform

l CalculatingtheP&Lonafuturescontract
l UnderstandingtheClearingHouseguaranteeandmarginingsystemforexchangetradedinstruments

Casestudy:Delegateswillcompleteamarginingreturnoveraperiodoftimeforasmallportfolio

Linearderivatives:Moneymarketderivatives

l Conceptofaforwardcontract
l Forwardinterestrates
l Forwardrateagreements(FRAs)
l Lockinginaforwardinterestrate
l Exchangetradedversion:Shortterminterestrate(STIR)futurescontracts

Casestudy:DelegateswillcompleteanumberofexercisesbasedonFRAsandSTIRs

Day2:Swaps

Multiperiodlinearinterestratederivatives:Swaps

l Theinterestrateswap(IRS)market
l Typesofswap
l Interestrateswaps

l Currencyswaps

l Understandingthecreditriskinswaps
l Relationshipbetweenswapsandforwards
l Marketstructure
l Interbankvs.Customermarket
l Brokerquotesintheinterbankmarket

l Whythemarketexists:Reducingfundingcostsbyusingswaps
l Applicationsofswaps

CaseStudy:Delegateswillderivethemarketswapbidandofferratesconsistentwiththeactualandtarget
borrowratesoftwoinstitutions

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AframeworkformarkingtomarketOTCderivativepositions

l Buildingthediscountfunction
l Whatinstrumentstouse
l "Bootstrapping"theswapscurve

Casestudy:Usingthebootstrappingapproach,delegateswillderivetheinterbankdiscountfunction

Markingtomarketinterestrateandcurrencyswaps

l Identifyingthecashflows
l Representingthefloatingcashflowsasnotionalcashflows
l Extendingtheprinciple:Pricingadeferredstartswap
l Markingtomarketacurrencyrateswap

Casestudy:Usingthediscountfunctionderivedearlier,delegateswillmarktomarketanumberofswap
positions

Day3:Introductiontooptions

Anoptionsprimer

l Whatisanoption?
l Optionterminology
l Exercisetypes
l Option"moneyness"

l Intrinsicvs.Timevalue

l Understandingthepayoffprofiles

Tradingandhedgingstrategieswithequityoptions

l Understandinghowtoconstructpayoffprofilesforcombinationsofoptionsandtheunderlying
l Understandingtherelationshipbetweenputsandcall
l Identifyingcommondirectionalandvolatilitytradingstrategies
l Hedgingwithoptions

Casestudy:Delegateswilldrawthepayoffprofilesofanumberoftradingstrategies

Introductiontooptionpricingandriskmeasures

l Theimportanceofcorrectvaluation
l Whatdrivesthepriceoftheoption:Understandingthemodelinputs
l Approachestooptionvaluation:Hedgeapproachvs.Probabilisticapproach
l BreakingdowntheBlackScholesoptionpricingmodel
l Optionriskmeasures:The"Greeks"

Casestudy:DelegateswillusetheoptionGreekstoestimatethenewpricefollowingachangeinmarket
variables

Abouttheinstructors

TheCourseDirectorwastheStrategicDevelopmentManagerattheLondonInternationalFinancialFutures
Exchange(LIFFE),wherehewasresponsiblefortheresearchanddefinitionofnewspecialistswapandrisk
transfercontracts.Priortothis,hewasHeadofInterestRateProductDevelopmentwithresponsibilityforthe
maintenanceoftheexistingproductrangeandthedevelopmentofnewproducts.

HebeganhiscareerwithErnst&YoungandGrantThorntonasataxspecialist,beforemovinginto
corporatetreasurymanagementatRoyalMailwherehewasprojectleaderforatreasuryandrisk
managementgroup.Inthisrolehedevelopedriskmanagementprotocolsandproceduresfortheuseof
derivativeproducts.Hewasresponsibleforrecommendingtheoptimalcombinationofproducttypesand
featuresforawiderangeofsituations.

Followingthecompletionofaquantitativefinancemastersdegree,hebecameseniorlecturerinCorporate
FinanceandTaxationattheUniversityofGreenwich.HeisavisitinglecturertoCassBusinessSchoolontheir
ExecutiveMBAprogramme.

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HeisapanelmemberfortheSecuritiesInstitute,amemberoftheAssociationofCorporateTreasurersand
anassociateoftheInstituteofTaxation.

Coursesrunbythisinstructor

DerivativesSchool(ModularCourse)
FixedIncome&CorporateBonds
BankApplicationsofDerivatives

Venue

45StarHotelinHongKong,HongKong,HongKong

Allofourcoursesareheldin45starhotels,chosenfortheirlocation,facilitiesandlevelofservice.You
canbeassuredofacomfortable,convenientlearningenvironmentthroughoutthedurationofthecourse.

Duetothevariationindelegatenumbers,wewillsendconfirmationofthevenuetoyouapproximately2
weeksbeforethestartofthecourse.Coursefeesincludetrainingfacilities,documentation,lunchesand
refreshmentsforthedurationoftheprogramme.Delegatesareresponsibleforarrangingtheirown
accommodation,however,alistofconvenienthotels(manyatspeciallynegotiatedrates)isavailableupon
registration.

WhoShouldAttend

TheDerivativeSchoolisbeneficialtoprofessionalsatalllevelswhorequireathoroughunderstandingofderivativesandtheirpractical
applications.

PreviousAttendees

WhyUs

Whyus

Wehaveacombinedexperienceofover60yearsprovidinglearningsolutionstotheworldsmajor
organisationsandareprivilegedtohavecontributedtotheirsuccess.Weviewourclientsaspartnersand
focusonunderstandingtheneedsofeachorganisationweworkwithtotailorlearningsolutionstospecific
requirements.

Weareproudofourrecordofcustomersatisfaction.Hereiswhyyoushouldchooseustohelpyouachieve
yourgoalsandaccelerateyourcareer:

Qualityourclientsconsistentlyrateourperformanceexcellentoroutstanding.Ouraverageoverallscore
awardedtousbyourclientsisnineoutoften.
Trackrecordwehavedeliveredtrainingsolutionsfor95%ofworldstop100banksandhavetrainedover
250,000professionals.
Knowledgeour150strongteamofindustryspecialisttrainersareworldleadingfinancialleadersand
commentators,ensuringourknowledgebaseissecondtonone.
Reliabilityifwepromiseit,wedeliverit.Wehavedeliveredover20,000eventsbothinpersonandonline,
usingsimultaneoustranslationtodelegatesfromover180countries.
RecognitionweareaccreditedbytheBritishAccreditationCouncilandtheCPDCertificationService.Inan
independentreviewbyFeefowescored96%onserviceand95%onproduct

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thedateofinvoice.Seatisconfirmedonlyuponreceiptofpayment.

Discountsarenottobecombined.

DuetorecentchangesinVISAprocessing,delegatesarestronglyadvisedtoobtainrelevantVISAsuptoonemonthpriortothecourse.

EuromoneyLearningSolutionsCertificate

DelegateswhosuccessfullycompletethiscoursewillreceivetheprestigiousEuromoneyLearningSolutionsCertificateastatementof
excellencerecognisedworldwide.

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