Course Outline
 

Course Title

 

Options (Advanced Concepts)

Course Category

   Online
Target Audience  

This course is designed for individual investor who wishes to gain a broader understanding of the strategic uses of the options markets.

Continuing Education

 

Professional Development:
CA, CGA, CMA, IDA

MX CE (7)
IQPF 04-06-0030 (7 credits - Level 2)
CSF 04-06-50030 (7 credits)
ADVOCIS #CE-8508 (7)

Prerequistes

  Derivatives : Basic Concepts Series / 
Courses 1, 2 and 3 

or

Participants must be familiar with the following derivative basic concepts :
basic characteristics of derivative contracts
pricing techniques of derivative contracts
rudimentary uses of derivative contracts
basic trading strategies using derivative contracts
Objectives   Upon completion of this course, participants will be able to use the two main option pricing models, i.e., the binominal option pricing model and the Black-Scholes option pricing model, to determine the value of an option. They will also understand the importance of the ''Greeks'' in selecting specific options for various option strategies, as well as how the ''Greeks'' and the option pricing variables change through time.
Subject by level  

Topics  

Introduction

Pricing Options
Introduction to pricing
Option pricing intuition
Binominal option pricing model
   .
One-step tree
   .
Two-step tree
   .
Extension of the binomal pricing model
Black-Scholes option pricing model
   .
A short history
   .
The formula
   .
Limitations of the Black-Scholes options pricing formula
   .
Volatility : Historical versus implied

The ''Greeks''
-  Introduction
Delta
Delta as rate of change in option prices
Delta as a hedge ratio
Gamma
Gamma as a rate of change in delta
Uses for gamma
Vega
Theta
Rho
Putting it all together

Conclusion

 
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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