Illustrative course outlines

At OTC we believe in tailoring our courses to meet each client’s specific requirements.  The illustrative course outline below gives an indication of the type of course content that we’ve been asked to deliver. For more information call us on +44 20 7700 3330 or email info@ockendontraining.com

Strategy & Leadership Finance & Commerce Investment Banking

Equity options pricing and risk management

What is covered?

This course looks in overview of at the structure of options and the principles of option valuation, price sensitivities and applications of options in hedging and risk management.   We will be looking at packaged options such as straddles, strangles, spreads, ratio spreads and butterflies and reviewing the option greeks.

Who will benefit?

Participants looking for a comprehensive introduction to options and prepared to move at a quick pace through basics to pricing and hedging.

Course content

Summarise  the key features of equity options and package option structures
    • Puts and calls,
    • American, European and Bermudan options
    • Intrinsic value and time value
    • Put/call parity and the drivers of option value
Simple package options 
    • Straddles, strangles, spreads, ratio spreads and butterflies
Outline how binomial option pricing models can arrive at prices for options and embedded options The Black Scholes approach to pricing and its limitations
Detail the main option Greeks and their relevance
    • Delta, gamma, vega, theta and rho
    • What are the Greeks used for?
Applications of options in risk management and hedging
    • Portfolio insurance


 

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