Basics of Options, Futures, and other Derivatives


4 locations available

Program Description

The purpose of this course is to help financial managers, general managers, senior functional managers, and other nonfinancial managers gain a thorough understanding of what financial derivatives are, how they work, how they are used, and how to measure the risks and rewards associated with them.

While using and trading derivatives can add enormous value to a firm, a lack of understanding of risk management techniques can easily lead to disaster. It is, therefore, vital for financial and nonfinancial firms to be knowledgeable about the latest tools, tactics, and strategies for risk management.

Program Goals

You will leave this course with a solid and immediately useful understanding of:

-- What forward, futures, swaps, and options are and how they work

-- How they affect the performance of your firm

-- How to use them

-- How not to use them

-- How to determine the value of an option or a futures position

-- A formula for determining the value of an option

-- The Black-Scholes Formula

-- How the prices of different options are linked together

-- How option prices change when market conditions change

-- Spot-futures parity

-- International interest rate parity

-- Forward exchange rates

-- How to hedge an existing position in financial derivatives

-- How to set up a derivatives strategy to achieve a given objective: eliminating the downside risk without limiting the appreciation potential, getting rid of an asset without selling it, etc.

-- How to design strategies to take advantage of expected moves in prices

-- The latest tools in risk management

Who Should Attend

Senior management of financial and nonfinancial institutions, risk managers, fund managers, analysts, corporate treasurers and regulatory officials can benefit from this seminar either as a refresher course or as an introduction to the complex world of financial derivatives.

In addition, executives in every functional area of responsibility, in all industries, whose decisions have significant financial impact, will benefit from this course. Managers from areas such as marketing, sales, manufacturing and engineering, as well as general managers who have been promoted through these routes, will find this program highly beneficial. Members of corporate boards also seeking a better financial foundation in this area will also benefit.

A familiarity with basic financial concepts such as discounting is necessary. However, this course assumes no prior knowledge of financial derivatives.

Topics Outline

Futures And Swaps
Options and The Black-Scholes Formula
Binomial Trees and Option Pricing
Risk Management with Derivatives

Last updated Dec 2017

About the School

Since 1898, the University of Chicago Booth School of Business has produced ideas and leaders that shape the world of business. Our rigorous, discipline-based approach to business education transforms ... Read More

Since 1898, the University of Chicago Booth School of Business has produced ideas and leaders that shape the world of business. Our rigorous, discipline-based approach to business education transforms our students into confident, effective, respected business leaders prepared to face the toughest challenges. We are proud to claim: an unmatched faculty, degree and open enrollment programs offered on three continents, a global body of nearly 42,000 accomplished alumni, strong and growing corporate relationships that provide a wealth of lifelong career opportunities. As part of the world-renowned University of Chicago, we share the university's core values that shape our distinctive intellectual culture. At Chicago Booth, we constantly question test ideas and seek proof. This extraordinarily effective approach to business leads to new ideas and innovative solutions. Six of our faculty members have won Nobel Prizes for these ideas - a record no other business school has matched. This same culture transforms our graduates into business thinkers superbly equipped to analyze and solve the greatest business challenges. Read less
Chicago , Philadelphia , London , Madrid + 3 More Less