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What will you learn about?

  • The supply and demand fundamentals of equity, currency, interest rate and commodity (agricultural, energy and metals) markets
  • How to measure and mitigate risks in financial and commodity markets and industries utilizing both exchange-traded and OTC derivatives including swaps, FRAs, caps and collars
  • Fundamental and technical analysis of futures markets
  • Advanced futures strategies and pricing
  • Advanced option pricing, volatility and sensitivity
  • Advanced options strategies including bull, bear, volatility and income strategies
  • Options strategies and technical analysis
  • How structured products including ETFs utilize derivatives in their creation

What is the course syllabus?

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Section 1 - Understanding Underlying Markets

Chapter 1 - The Interest Rate Market

Topics covered in this chapter are:

  • Characteristics of Interest Rate Instruments
  • Deposits and Loans
  • Securities
  • The Term Structure of Interest Rates

Chapter 2 - The Foreign Exchange Market

Topics covered in this chapter are:

  • What Is the Foreign Exchange Market?
  • Exchange Rate Quotations
  • Determinants of Foreign Exchange Rates
  • Spot and Forward Markets
  • Structure of a Foreign Exchange Operation

Chapter 3 - An Overview of the Crude Oil Industry

Topics covered in this chapter are:

  • History of Crude Oil
  • Structure of the Oil Industry
  • Crude Oil Trading
  • Major Participants in Crude Oil Risk Management
  • Oil Market Pricing
  • Forward Pricing
  • Crude Oil Investment Vehicles

Chapter 4 - The Natural Gas Market and Industry Overview

Topics covered in this chapter are:

  • A Primer on Natural Gas
  • History and Regulation of the Natural Gas Industry
  • Structure of the Natural Gas Industry
  • Uses of Natural Gas
  • Trading in Natural Gas
  • Natural Gas Pricing
  • Natural Gas Investment Vehicles

Chapter 5 - An Overview of the Gold Industry and Markets

Topics covered in this chapter are:

  • History of Gold
  • Structure and Size of the Gold Industry
  • Sources of Gold Demand
  • Sources of Gold Supply
  • The Case for Gold as an Investment
  • Spot Gold Market Pricing
  • Forward Gold Market Pricing
  • Gold Investment Vehicles
  • Precious Metals Mining Company Analysis

Chapter 6 - Agricultural Markets

Topics covered in this chapter are:

  • The Wheat and Corn Industries
  • Overview of the Wheat and Corn Markets
  • Price Discovery in the Wheat and Corn Markets
  • Investment Vehicles
  • Appendix: Analysis of the Wheat Market

Section 2 - Pricing of Forward-based Contracts

Chapter 7 - Pricing of Forward-Based Contracts

Topics covered in this chapter are:

  • The Pricing of Forward-Based Commodity Contracts
  • Forward Pricing in the Energy Sector
  • Forward Gold Market Pricing
  • Agricultural Forward Market Pricing
  • The Pricing of Forward-Based Interest Rate Contracts
  • The Pricing of Forward-Based Equity Contracts

Section 3 - Advanced Trading Techniques using Derivatives

Chapter 8 - Option Pricing and Volatility

Topics covered in this chapter are:

  • Price Versus Value
  • Intrinsic Value
  • Time Value
  • Factors that Affect the Value of an Option
  • Option Pricing Models
  • Volatility

Chapter 9 - Option Sensitivities

Topics covered in this chapter are:

  • What Are Option Sensitivities?
  • Delta
  • Gamma
  • Vega
  • Theta
  • Rho
  • The Interrelationship of the Sensitivities
  • Calculating Portfolio Sensitivities

Chapter 10 - Bull and Bear Spreads

Topics covered in this chapter are:

  • What is an Option Spread?
  • Bull Call Spread
  • Bear Call Spread
  • Bear Put Spread
  • Bull Put Spread

Chapter 11 - Volatility Strategies I

Topics covered in this chapter are:

  • Overview of Volatility Strategies
  • Long Straddle
  • Long Combination (Strangle)
  • Short Straddle
  • Short Combination
  • Long Butterfly
  • Short Butterfly

Chapter 12 - Volatility Strategies II

Topics covered in this chapter are:

  • Call Backspread
  • Put Backspread
  • Ratio Call Spreads
  • Ratio Put Spreads
  • Time Spreads

Chapter 13 - Hedging Strategies

Topics covered in this chapter are:

  • Protective Puts
  • Married Puts
  • Protective Calls
  • Covered Calls as a Hedge
  • Collars

Chapter 14 - Income Strategies

Topics covered in this chapter are:

  • Naked Option Writing
  • Covered Call Writing

Chapter 15 - Option Strategies and Technical Analysis

Topics covered in this chapter are:

  • Option Patterns versus Underlying Stock Price Patterns
  • When to Implement an Option Strategy
  • Reversal Patterns
  • Continuation Patterns
  • Sideways Trading Markets
  • Options as Market Indicators

Chapter 16 - Futures Spread Strategies

Topics covered in this chapter are:

  • Benefits of Spreads
  • Types of Spreads
  • Risks of Spread Trading

Chapter 17 - Fundamental Analysis of Futures Markets

Topics covered in this chapter are:

  • Supply and Demand Analysis
  • Types of Fundamental Analysis
  • How Government Programs and International Agreements CanAffectPrices
  • Major Limitations in Fundamental Analysis

Chapter 18 - Technical Analysis of Futures Markets

Topics covered in this chapter are:

  • Sentiment Indicators
  • Volume and Open Interest
  • Seasonality
  • Combining Technical and Fundamentals
  • Trading Systems and Risk Management
  • A Simple Trading Plan

Section 4 - Advanced Risk Management Techniques using Derivatives

Chapter 19 - Hedging Equity Market Risk

Topics covered in this chapter are:

  • Identifying Equity Risk
  • Managing the Risk of a Single Stock Using Equity Options
  • Managing the Risk of an Equity Portfolio Using Stock IndexFutures
  • Managing Equity Risk Using Equity Swaps
  • Managing the Risk of Bought Deal Transactions

Chapter 20 - Hedging Interest Rate Risk

Topics covered in this chapter are:

  • Identifying Interest Rate Risk
  • Measuring Interest Rate Risk
  • Managing the Risk of Future Borrowing Costs
  • Managing the Risk of Current Borrowing Costs
  • Managing the Risk of Bonds with Bond Futures Contracts

Chapter 21 - Hedging Foreign Exchange Risk

Topics covered in this chapter are:

  • Which Entities Are Exposed to Foreign Exchange Risk?
  • Measuring Foreign Exchange Risk
  • Measuring the Risk of Foreign Securities
  • Managing Translation and Transaction Risk
  • Managing the Currency Risk of Foreign Securities and Portfolios

Chapter 22 - Hedging Commodity Price Risk

Topics covered in this chapter are:

  • Identifying Commodity Price Risk
  • Hedging Energy Price Risk
  • Hedging Energy Price Risk Using Exchange-Traded Derivatives
  • Hedging Energy Price Risk Using OTC Derivatives
  • Hedging Metal Price Risk
  • Hedging Agricultural Price Risk

Section 5 - Using Derivatives to Structure Investment Products

Chapter 23 - Principal Protected Notes (PPNs)

Topics covered in this chapter are:

  • Principal-Protected Notes (PPNs) – What Are They?
  • PPN Structures and the Use of Derivatives
  • CPPI and Zero-Coupon Bond Plus Call Option Structures— Key Differences

Chapter 24 - Derivative-Based ETFs

Topics covered in this chapter are:

  • Commodity ETFs
  • Swap-Based ETFs and the Synthetic Replication ofIndexes
  • Leveraged and Inverse ETFs

How will you learn?

CSI’s online learning system helps you meet your study goals. You’ll benefit from:

  • Textbook material in PDF and printed format
  • Review questions included throughout the course
  • Course updates
  • End of section quizzes to earn CE credits
  • Access to CSI’s academic support specialists

Course Completion Notice

On successful completion of this course you will be able to download a Notice of Course Completion available through your student profile. This will remain on your profile as formal confirmation of course completion.

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