Course

Exotic Options and Basic OTC Structures

Welcome to our course on Exotic Options and Basic Structured Operations! Tailored for both buyers and sellers in the American commodities market, this program delves into the nuances of exotic options like Asian, digital, and barrier options. Explore essential structures such as collars, put spreads, and call spreads, gaining invaluable insights into the dynamic Over-the-Counter (OTC) market. Uncover the strategic prowess of OTC market practices, particularly valuable for risk management in the commodities market. Join us on this educational journey, empowering you to navigate and mitigate risks effectively in this specialized financial landscape.

Intermediate
 24 Tests
12 Videos
6 E-books
2 hours of duration
1 Specialist

$ 99

What you will learn

Asian Options

Welcome to the course's kickoff! Module 1 dives into Asian Options, where we shift focus from traditional options. By utilizing the average price of the underlying asset over a specific period, we mitigate exposure to price volatility at expiration. Unlock risk management advantages as you navigate a more stable financial path.

Digital Options

Elevate your understanding as we delve into the unique realm of digital options. Standout feature: a fixed cash payoff upon exercise in an In-the-Money (ITM) scenario. Explore the distinctive characteristics of this exotic option and unravel the potential benefits it offers in various risk management strategies.

Barrier Options

Delve into the versatility of barrier options, offering the flexibility of high or low barriers that trigger activation (knock-in) or deactivation (knock-out) of the option. This distinct advantage allows for premium reduction, effectively lowering the cost of risk management strategies. Explore the intricacies of barrier options and their role in optimizing risk management approaches.

Structures - Collar

Uncover the strategic brilliance of collar structures, where setting maximum and minimum prices for asset purchase or sale is achieved through simultaneous buying and selling of call and put options. Explore the intricacies of this risk management approach, strategically employing options to establish controlled parameters for asset transactions. Dive into the world of collars and enhance your toolkit for effective financial management.

Structures - Put Spread

Explore the dynamics of put spread strategies, involving the simultaneous purchase and sale of two put options. This structure not only reduces the cost of risk management but also sets a limit on the payoff in the event of sharp price declines. Gain insights into optimizing risk exposure while maintaining strategic control. Join us in unraveling the nuances of put spread strategies in commodity sales."

Structures - Call Spread

Concluding our course with insights into risk management in commodity purchases. Explore the simultaneous buying and selling of two call options, a call spread strategy that effectively lowers the cost of risk management while establishing a limit on payoff in the event of substantial price increases. Gain a comprehensive understanding of strategic risk control in commodity buying operations. Join us as we wrap up, mastering the dynamics of call spread structures."

Experts

John Payne

Relationship Manager-Agriculture OTC at Hedgepoint
John has been a market strategist and market intelligence specialist in the livestock and grain markets since 2008, he has extensive global market knowledge with emphasis on US and international markets. Has an analytical thinker profile with the ability to quickly grasp new concepts and identify effective risk management strategies in several commodities markets. When he isn’t obsessing over meat and grain markets, he spends time with his wife and two kids in Chicago.

Content

Start your journey now!

Single Course

Begin your journey now in our comprehensive learning track

Access for 3 months

  • Class with an expert in the field for each commodity
  • Access to e-books as supplementary materials for your learning
  • Online tutor to address your doubts
  • Issuance of Completion Certificate

Exotic Options and Basic OTC Structures

US$ 99

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