- Introduction to Foreign Exchange
- Background, market development, volumes
- Economics of Foreign Exchange
- Why do exchange rates move?
- Long and short term influences
- Effect of economic indicators, politics
and uncertainty
- Interest rate differentials
- Different currency classifications: major,
minor, exotic, crosses, baskets
- Spot and Forward Foreign Exchange Market Operations
- Different types of quotations: direct
and indirect
- Timing procedures and practices: banks
and non-banks (corporates)
- Premiums and discounts
- Calculating “straight” and
“broken date” forwards
- Interpolation
- Introduction to Options
Definitions and key features
- Different types of options: exchange-traded
vs OTC
- American vs European options
- Terminology
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- Pricing Options
- Background to the options pricing models,
Black-Scholes etc.
- Limitations to and extensions of the pricing
models
- Main premium determinants
- The role of volatility
- Analysing option values: Intrinsic and
time value
- Using Options
- Hedging receivables and payables
- Transaction, translation and contingent
exposure
- Risk management and speculation
- Leverage/gearing
- Asymmetry of risk: Option buying and option
writing
- Options Risk Management
- Managing options over time using “the
Greeks”
- The Greeks: Delta, gamma, theta, vega,
phi/rho
- Revisiting option strategies
- Portfolio management - how to manage the
Greeks
- Syndicate work
- The Importance of Volatility
- Statistical background
- Hedging and trading with volatility
- Volatility curves and swaps
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