Trustees' Futures & Options Overview


Background & Objectives

 

Derivatives are increasingly suggested for and used by, Pension Funds to hedge or protect portfolios as well in some cases, to generate income.

 

Since these are products are unusual and can be complex the result is often bewilderment and confusion on the side of Trustees.

 

The most common Derivatives used are Futures and Options and this seminar aims to explain individually:

 

 - what Futures and Options are

 - how they work

 - their most common uses in Pension Fund Investment.

 

No prior knowledge is assumed but participants should have a basic knowledge of Bonds (Fixed Income) and Equity Investments.

 


Content

 

 Futures

 

What are Futures?

-  Background, Terminology, Types.

Contract and Pricing aspects.

Long and Short positions.

How and why Fund Managers use Futures.

 

Options

 

What are Options?

Futures v Options contrasted.

Background, Terminology. Types.

OTC v Traded Options explained

Calls and Puts explained

Contract and Pricing aspects

Time and Intrinsic values explained

How Options are valued outline

How and why Fund Managers use Options

 

-  Graphical display of profit and loss positions.

-  Meaning and requirement of Margin

 

Portfolio Exercise using Futures & Options




Todays Date:


Duration  day
Available as an in-house tailored course







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