Understand the principle of Interest Rate Parity Calculate forward rates Understand the various ways forward rates are quoted Use forward foreign exchange contracts for a variety of purposes, including hedging investment positions, speculation, and arbitrage opport Learn More>>
Describe the features, benefits, and disadvantages of vanilla currency options Explain how vanilla currency options are applied in hedging Explain how vanilla currency options are applied in directional trading Apply the mechanics underpinning vanilla currency opti Learn More>>
Define and understand spot rates Convert currencies Calculate cross rates Understand the importance of the bid/offer spread Learn More>>
Understand the features of single barrier options in the OTC currency markets Compare the benefits and disadvantages of single barrier options to OTC vanilla currency options Apply single barrier options to simple directional currency trading and hedging situations Learn More>>
Understand the fundamental concepts of currency risk and hedging. Discuss the rationale and motivation of currency hedgers. Differentiate between the P/L characteristics and the protection afforded by forwards and five different option-based strategies. Learn More>>
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