Derivatives Module
The Derivatives Market is a huge market with over $500 trillion in notional amount and with a multitude of products from plain vanilla to exotics that keep increasing in complexity. Bullquest training program spans the full spectrum from a basic introduction to Derivatives covering Futures, Options, Swaps with an overview of the instruments, the pricing and trading strategies, to an in-depth look at exotics, equity derivatives, interest rate derivatives or credit derivatives.
Cash versus Derivatives Contracts
Forwards & Futures
OTC versus Exchange traded Contracts
Types of Futures Contracts(interest rate futures, commodity futures, Index Futures, Eurodollar Futures....)
Characteristics of Futures contract on several exchanges such as CME,NYMEX,LIFFE, EUREX..
Deliverable versus non-deliverable Futures
Payoff Profiles
Margin, Clearing and Settlement
Pricing Futures (cost of carry, basis, contango, backwardation...)
Trading Futures, Speculation and Hedging with Futures
Understanding Option Contracts/Terminology
Stock Options, Index Options, Futures Options, FX Options, Interest Rate Options, Exotic Options
Payoff Profiles
Put/Call Parity
Pricing Options; Binomial and Black & Scholes, Volatility, Implied Volatility and the Volatility Surface
Trading Options
Understanding the sensitivities, the Greeks; Delta, Gamma, Vega, Theta and Rho
Hedging, Leverage, Income Generation, Synthetic Exposure, Arbitrage and Volatility Trading
Strategies; covered call, protective put, bull spread, bear spread, butterfly, straddle, strangle....
Understanding Swaps,Interest Rates Swaps, Equity Swaps, Currency Swaps....