Flexibility – Embedded & real options (2-day course)

Flexibility in physical assets & Optionality in client portfolios

Mon-Tue 3-4 October, 10:00-16:00 (CET)

Target groups:

  • Including staff of commodity & energy supplying firms, and employees of companies with physical capacity (production, consumption, storage, transport). Also suitable for brokers, system operators and staff of a commodity or energy trading firm.

Learning objectives:

  • Being able to identify business decisions and understand the related room for choices.
  • Being able to convert managerial decisions in terms of options.
  • Understand the type and level of flexibility in an asset or portfolio.
  • Understand how flexibility can be modelled.
  • Understand the advantage of modelling and why this supports valuation and hedging.
  • Master the option theory and its application on the flexibility in a firm’s physical and financial assets.
  • Master related processes and concepts, as well as relevant terminology.
  • Become an expert in the pricing and valuation of flexibility.
  • Get grip on the way to handle flexibility and capitalise on it.

Including:

  • Lunch
  • Study materials (handout + book)
  • Guided tour around the exchange, brokers, hedge funds and trading firms.

Programme:

  • Fundamentals & essentials of options
    • Rights & (potential) obligations
    • Risk-reward ratio
  • Valuation of options and optionality
    • Models & parameters
    • Exotic options vs vanilla options
  • Flexibility in supply contracts
    • Validity time of proposal
    • Take or pay constructions
    • Volume flexibility
      • Optimisation
    • Swing optionality
      • Capitalisation
    • Flexibility on physical assets
      • Capacities
        • Processing capacity (combined production & consumption capacity)
        • Storage capacity
        • Transport capacity
      • Margin
        • Spreads
        • Spread trading
      • Asset-backed trading
        • Dynamic hedging & financial optimisation
        • Locking-in intrinsic value & monetising extrinsic value
        • Delta-hedging


About the Lecturer

Jerry de Leeuw
Jerry de Leeuw, MSc. (founder of Entrima, former trader and author of the book “Optionality & flexibility”)



Register for Flexibility – Embedded & real options (2-day course)



 

Our Labels

Entrima and Market Abuse Centre (MAC) are the two labels we operate to provide learning services for professionals in the commodity & energy markets.
 
 


Content & Context

Entrima’s mission is to transfer knowledge regarding the business, controls & operations of parties in (or relating to) the wholesale markets.

www.entrima.org


Conduct & Culture

MAC’s mission is to facilitate the prevention & detection of misconduct and to foster proper behaviour in organisations. This is achieved via training, periodic updates and increased awareness.

www.marketabusecentre.com