Are a dealer in a bank and acting in the capacity of a market maker
Are a dealer in a corporate treasury managing FX, commodity and Rate risks
Are a trader in a hedge fund
Are working on an equity F&O desk
Are a Retail trader speculating in equities through F&O
What will you gain from this course?
The objective of this course is to enable participants to select the appropriate instrument/strategy using derivatives for trading/hedging given the prevailing market conditions.
If you are a market maker, it will help you understand how to manage the delta, gamma and vega risks on the book.
If you are a hedger it would help you select the right strategy based on the cost, protection and participation i.e. selecting the appropriate strike, whether to go for a plain vanilla option or a risk reversal, ensuring that the quoted price is fair, accounting implications.
If you are a speculator it will help you understand the payoffs, sensitivity of strategy to underlying, payoffs under various scenarios and associated risks.
Basics of F&O
Option Valuation (Black Scholes Merton Model)
Term Structure of Volatility. Volatility Smile and Volatility Surface
Option Strategies (Based on directional view, View on Term Structure of Volatility and View on Volatility Smile)
Option strategies for Exporters and Importers
Option strategies for hedging Foreign Currency Liabilities
Forward Rate Agreements and Interest Rate Swaps
Case Studies illustrating importance of selecting the appropriate instrument for hedging