Course Outline
 

Course Title

  

Futures and Forwards

Course Category

    Online
Target Audience  

This course is designed for institutional investors who wish to advance their knowledge of derivatives to be able to confidently select and integrate these instruments into their portfolios.

Continuing Education

  

Professional Development:
CA, CGA, CMA, IDA

8 MX CE Credits
8 CE credits : Advocis #AD3311

Prerequistes

   Derivatives : Basic Concepts Series / Courses 1, 2, and 3, and basic knowledge of financial mathematics.
or
Participants must be familiar with financial mathematics as well as with the following basic derivative concepts :
· Basic characteristics of derivative contracts
· Pricing techniques of derivative contracts
· Rudimentary uses of derivative contracts
· Basis trading strategies using derivative contracts
Objectives   Upon completion of this course, participants will have in-depth knowledge of the types, specifications and mechanics of futures contracts. They will be able to price and use futures contracts, as well as know the risks inherent in such products.
Participants will also be able to use derivative instruments to solve common everyday investment problems and understand the risks and rewards inherent to derivative products.
Subject by level  

Topics  

Pricing
- Forward Pricing for Assets with No Interim Cash Flowso
 - Forward Pricing for Assets with Interim Cash Flows
- Examples of Arbitrage Opportunity
- Futures Prices Equal Forward Prices

Using Futures Contracts
- Using Futures to Take a Leveraged Position in a Stock
- Using Futures to Take a Position in an Index
- Investing in Futures and Risk-Free Bond Markets
- Using Futures to Invest in Commodities

Hedging and Basis Risk
- Overview: Why Hedge?
- Types of Hedges
- Minimum Variance Hedge Ratio
- Hedging with Forwards
- Hedging with Futures
- Risks in Hedging
- Cross Hedging

Basis and Basis Risk for Forwards and Futures

Spread Trading
- Calendar Stread
- Intracommodity Spread
- Intercommodity Spread
- Roll Risk in Futures
- Tailing Futures Hedging

 
Duration   This online course is equivalent to an in-class course with a duration of 8 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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