Learning Platform - "Trade Compliance & Surveillance"

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:

1. Consumer hedge – Introduction
2. Consumer hedge – Capping at different levels
3. Consumer hedge – Selecting the strike price
4. Producer hedge – Introduction
5. Producer hedge – Flooring at different levels
6. Producer hedge – Selecting the strike price
7. Selection of strike & maturity
8. Hedging a linear exposure with a non-linear instrument
9. Hedging a non-linear exposure with a linear instrument
10. Hedging long call with short future
11. Hedging short call with long future
12. Hedging long put with long future
13. Hedging short put with short future
14. Delta-hedging – Introduction
15. Delta-hedging – Dynamic hedging
16. Delta-hedging – Delta-neutrality
17. Delta-hedging – Making or losing money
18. Delta-hedging – Relevant Greeks
19. Delta-hedging – Premium long or short

This course also includes examination and certification.