Derivatives are financial instruments that are commonly used for hedging, leveraging and speculating, to put it simply. If used properly, they can be valuable investments. Therefore, it is important for an investor to understand what derivative contracts are and the risks associated with them so that they can be used to your advantage.
This course will go through:
- The raison d’être for derivatives and futures contracts
- Options on various underlying assets and indices, with emphasis on understanding the mechanics of the contracts, their uses for hedging risks or implementing investment views as well as potential pitfalls associated with their use
- Option valuation and option risk measures and how various factors affect the values of options qualitatively
- Structured warrants and concepts such as conversion ratio, gearing and premium
- Interest rate swaps and cross-currency swaps
This course is IBF-FTS Accredited and offers a total of 5.5 CPD hours, inclusive of assessments.