Risk
Understanding Options
Call and put options, pricing factors, put-call parity, and trading mechanics
3 CPD credits on completion
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Certificate on completion
Downloadable resources
Self-paced learning
About This Course
Course Information
This course examines options and their use in risk management, including the properties of different options, option market mechanics, multi-option and hedging strategies, and different exotic options.
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 3 units of CPD. One unit is the equivalent of one hour of learning.
Course Sections
This course is made up of the following sections:
- Options market (video)
- Options market (quiz)
- Non-standard products (video)
- Non-standard products (quiz)
- Properties of options (video)
- Properties of options (quiz)
What You Will Learn
- Describe the payoff and profit profiles for long and short positions in call and put options
- Distinguish between American and European options and explain when early exercise is valuable
- Identify the six factors that influence option prices: stock price, strike price, interest rate, volatility, time to maturity, and dividends
- Apply put-call parity to determine the fair price relationship between European calls and puts
- Calculate upper and lower pricing bounds for both call and put options
- Explain option moneyness, strike price conventions, and the effect of stock splits on option contracts
Who This Course Is For
- Finance professionals seeking to understand how options work before applying them in hedging or valuation
- Accountants who encounter options positions in financial reporting or audit work
- Professionals preparing for further study in derivatives pricing or risk management
Prerequisites
- A basic understanding of financial markets, including stocks and bonds
- Familiarity with the concept of present value and discounting
Frequently Asked Questions
Course Details
CPD Credits3
CertificateYes
Pricing
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Everything included in your subscription:
CPD certificate on completion
Downloadable resources
Self-paced learning
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