Calculate the theoretical value of an option, using a binomial tree Use basic statistics to derive option value Discuss how the characteristics of options affect their value Calculate the impact of volatility on an option Calculate the intrinsic value and time... Learn More>>
Explain the use and characteristic features of exotic options Contrast the payoff profiles and corresponding risks of various exotic options State the potential uses of exotic options in hedging Learn More>>
Identify key features of popular futures contracts Calculate P/L for various futures contracts Calculate conversion factors and delivery prices for UST futures Learn More>>
Calculate the coupon payments for an interest rate swap Price an interest rate swap by calculating the present values of the fixed and floating sides Derive a fixed rate for an interest rate swap Learn More>>
Describe what options are, how they work, and why they are used Determine the nature of the potential payoffs and inherent risks associated with basic option positions Discuss the mechanics of various popular option strategies Learn More>>
Calculate the coupon payments for a currency swap Price a currency swap by calculating the present values of the fixed and floating sides Learn More>>
Understand the advantage of swap transactions in a variety of situations Learn More>>
Describe the characteristic features of caps, floors, and swaptions Explain the payoffs and risks of caps, floors, and swaptions Summarize the characteristics of various combinations of caps and floors Calculate the payoff for an interest rate collar Learn More>>
Be able to calculate the breakeven price, net investment, profit/loss, and period return of six equity derivative strategies. Understand profit/loss within the broader context of the investor's market view and investment objectives. Learn More>>
Calculate the intrinsic value and time value of an option Measure and see the effects of theta, delta, gamma and vega Learn More>>
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