Course Outline
 

Course Title

  

Options

Course Category

    Online
Target Audience  

This course is designed for institutional investors who wish to gain a complete understanding of the fundamentals of interest rate options, their use and valuation.

Continuing Education

  

Professional Development:
CA, CGA, CMA, IDA

7 MX CE Credits

Prerequistes

   Participants must have a basic understanding of financial markets, fixed income securities and derivatives
Objectives   Upon completion of this course, participants will have a complete understanding of the characteristics of interest rate options and the issues involved with their pricing. Participants will also be able to describe how interest rate options positions are managed.
Subject by level  

Topics  

Introduction
-  Interest Rate Options vs Equity Options
-  Interest Rate Options vs Interest Rate Futures

Options on Futures
-  The OBX contract: Option on Three-Month Canadian Banker's Acceptance Futures Contract
-  Using OBX Contracts to speculate on Interest Rates
-  Using OBX Contracts to Hedge a BA-Based Borrowing
-  Using a OBX Call and Put Options to Hedge a BA-Based Borrowing
-  Using OBX Contracts to Hedge a Swap position
-  The OGB Contract: Option on Ten-Year Government of Canada Bond Futures Contracts

Bond Options
-  Options on Risk-Free Government Bonds - the OBK, OBV and OBZ Bond Options
-  Options on Corporate Bonds and Credit Derivatives
-  Bonds with Embedded Options

Caps, Floors, Collars and Swaptions
-  Interest Rate Caps
-  Interest Rate  Floors and Collars
-  Swaptions

Pricing and Hedging Interest Rate Options
-  Why Interest Rate Derivatives are difficult to price
-  Term Structure Models
-  Managing and Interest Rate Option position

Self test

Glossary of terms

 
Duration   This online course is equivalent to an in-class course with a duration of 7 hours. Online courses are self-paced, and the time necessary to complete each course will vary with each student
Time to comple the course   Six months (user account can be deactivated after this period)
Date   Available now
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