Derivatives

Kursbeschreibung / -kommentar

Master Finance Course, 1st Semester.
Basic principles of the use of derivatives
- Explanation of cash markets and future markets.
- Presentation of the mechanisms of futures and options markets.
- Distinction between futures instruments and cash instruments.
Risk profiles of futures and options
- Determination of earnings and loss potential of futures and options.
- Determination of priorities and possibilities for the use of derivatives.
- Quantification of earnings effects from the implementation of derivatives in
connection of cash instruments.
- Identification of high risk-limiting potential through the use of derivatives.
- Trading strategies with options.
Market price risks of options
- Determination of factors influencing the market price of the options (Greek Letters).
- Derivation of market price development with change in influencing factors.
- Highlighting the multidimensional nature of the option price trends, and identifying ideal parameter values when using derivatives.
Case studies on the use of derivatives
- Development of combination possibilities of derivatives.
- Identification of the specific risk profiles of these derivatives combinations.
- Demonstration of the earnings / risk potential associated with the cash instruments.
Derivatives of the second Generation
- Warrants and certificates.
- Presentation/ implications of these derivatives.
- Identification of the specific market potential of these developments.
- Comparison with standard options.
Opportunities and risks of derivatives
- Outline the high chance-, risk-potential of the derivatives.
- Revenue generation rather than high risk strategy.
- Evaluation, monitoring and control of derivatives on relevant IT systems.
- Assessment of the macroeconomic relevance in a global context.