Course Description
This course aims to explain comprehensively the core and vital basis on the hedging strategies mainly specified on the hedging of FX and commodities. It enables participants to identify the areas of hedging and applying practical hedging strategies to control FX and Commodity risks.
Course Objectives
- Identifying Hedging, areas of hedging and related terminology
- Understanding the mechnanics of hedging, main tools and down side risks
- Getting Insights about the main essentials of FX and Commodity instruments
- Understanding practical and affordable Hedging Strategies
Who Should Attend?
- Managers
- Supervisors
- Professionals and leaders responsible from hedging transactions and have brief knowledge about derivatives
- Anyone having financial background who is involved in FX or/and Commodity(emtia) hedging and have brief knowledge about derivatives
- Anyone who has taken the course "Introduction to Financial Derivatives: Options, Futures and Swaps"
Course Details/Schedule
- What is hedging?
- Areas of hedging and their risks
- Downsides of hedging
- Absolute and Relative Return
- Underlying Securities and their downside risks
- Hedging Techniques
- Types of Hedging
- Risk and Return Tradeoff
- FX underlyings
- Cover Ratio
- Break Even Analysis
- Scenario Analysis
- Case Studies
- Forward Market Hedge
- Money Market Hedge
- Risk Shifting
- Hedging through Asset Allocation
- Hedging through structures
- Hedging through Options
- Strike Price, Price Protection and Purchase Price
- Case Studies
- Pricing Theory and Practice
- Volatility Premium, Index Drift, Time Decay
- Expected Payout
- Time Extension Put Rolling
- Spread Hedging
- Calender Spreads
- Rebalancing
- Case Studies
- FX Money & FX Exchanges
- Commodity Money& Commodity Exchanges
- Long and short future hedges on FX & commodity
- The FX Risk impact on Commodity Risk
- Structured Derivatives in Hedging
- Comparative analysis of Hedging Tools for FX and Coomodity
- Case Studies and Simulations
