Learning Platform - "Markets & Trading"
Course: Options – Hedging Exposures
About the online training programme
Options can be used for hedging purposes, whereas option positions can be hedged with forwards or futures. This course provides the essentials of hedging strategies with options. It is covered how commodity consumers can hedge their exposures with options, and the same applies to commodity producers. Next, it is set out how options can be hedged with term contracts. In particular the concept of Delta-hedging is explained.
Course Contents
This course covers the following video lessons:
- Consumer hedge – Introduction
- Consumer hedge – Capping at different levels
- Consumer hedge – Selecting the strike price
- Producer hedge – Introduction
- Producer hedge – Flooring at different levels
- Producer hedge – Selecting the strike price
- Selection of strike & maturity
- Hedging a linear exposure with a non-linear instrument
- Hedging a non-linear exposure with a linear instrument
- Hedging long call with short future
- Hedging short call with long future
- Hedging long put with long future
- Hedging short put with short future
- Delta-hedging – Introduction
- Delta-hedging – Dynamic hedging
- Delta-hedging – Delta-neutrality
- Delta-hedging – Making or losing money
- Delta-hedging – Relevant Greeks
- Delta-hedging – Premium long or short
This course also includes examination and certification.
