Expanded Insights into the Financial Derivative Markets & Product Dynamics

Programme description & objectives

Programme description & objectives The significance of a vibrant, effective, and efficient derivatives market in the present tumultuous environment cannot be overemphasized. Specifically, the Nigerian financial/monetary environment is presently being buffeted and impacted by the whirlwind of the global exchange rate regimes. The prevailing financial crisis, therefore, demands increased strategic measures in not only how the futures and derivatives markets are regulated, but in the market structure for the trading and clearing of derivative instruments, and in how they are priced. The agenda of this course will offer delegates a thorough and practical understanding of currency option pricing and risks and will explain how options can be used in directional and non-directional strategies, together with their dynamic hedging implications. The program will also focus on analysing, structuring and decomposing hedging, trading and investment strategies utilising both vanilla and exotic options. Delegates will construct and examine a wide variety of directional and non-directional strategies, formulate strategies to meet client exposure management and other objectives, and decompose a range of structured option strategies into their component parts. The impact of changing market conditions on the pricing and performance of these strategies will also be examined. Furthermore, our experienced facilitators would place emphasis on the dynamic interaction between option price determinants, the impact on portfolio risk of higher order risk properties of vanilla and exotic options (Vanna, Volga) and their pricing and risk management. Delegates would also be taken through higher order volatility risks and their management within the portfolios of vanilla and exotic option types. Finally, the program would focus on exotic options and a range of the more commonly executed structured FX products as well as their pricing and risk characteristics, in order to understand the motivations and rationale for their usage in a variety of different hedging and trading applications.