Hedging Risk with Financial Futures & Options

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Click to Register Online or call 202.223.1528.
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Course: This two-day program is designed for hedgers including investment managers, corporate treasurers, bankers, and pension plan administrators who anticipate the use of futures and/or options for the purpose of hedging their cash market exposure with a variety of exchange-traded financial products. The course will demonstrate that hedging is about obtaining price insurance for either unpleasant or potentially catastrophic events. It will provide detailed examples of how to quantify and construct robust hedging strategies for money market instruments, foreign exchange, fixed income Treasury product, and equity indexes. We will cover both hedging with futures as well as hedging with option products. If you have some option experience and want to turbo-charge your effectiveness, we will show you how to use the delta, gamma, theta, and vega statistics to achieve more of what you're trying to accomplish.

Compelling Topics Include:

  • Can your price risk be hedged? Sometimes this is straight-forward, other situations might be very tricky. How do you quantify how robustly a given hedging strategy may work?
  • Learn how and why futures are typically 2-5 times cheaper than trading the cash market while benefiting from daily transparent settlement prices and no counterparty risk.
  • Understand the pricing mechanisms used to value a futures contract. How can you decide if the futures contract is cheap? dear? How can you model the expected futures price adjustment once the carry changes?
  • Learn savvy hedging with futures techniques to robustly manage your exposure to stocks, bonds, and foreign exchange.
  • Where are interest rates going? Implied forward rates give you some of the best information available regarding where the market expects interest rates to go in the future. How do you lock-in a future interest rate using only today's cash term structure?
  • Have you ever been bitten by an unanticipated change in the term structure of futures? Exactly how and why does this happen?
  • Option strategies require that you understand the nature of the net resulting position before the option hedge is been established. Learn how to anticipate how much the option premium will change if either price, time, or volatility changes
  • Compare the long put hedge vs. the short call hedge under a variety of possible outcomes. Learn which is most effective at meeting your risk reduction parameters.
  • Become adept at using options to modify your market position to be congruent with corporate goals.
  • Which strategy works better: Overlaying static serial expirations and strike prices or a dynamic strategy that varies either the quantity or the strike price to achieve the planned results?

Class Size: Registration is limited to approximately 15 participants to promote student participation and interaction.

Who Should Attend: Corporate treasury staff involved with managing company exposure to rates, currencies, and stock indexes, financial professionals anticipating the use of derivatives to modify their exposure to capital market products.

Level: Intermediate

Cost: $900 early-bird ends 4 weeks prior to course date; $1000 standard registration.
Complimentary morning and afternoon
refreshment breaks, and lunch are provided.

To Register: Online click here, contact
the Institute at 202.223.1528
or via e-mail at info@theIFM.org

Register Now