Pricing Financial Instruments

Redcliffe Training Associates

Short course

Inhouse

£ 3001-4000

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Description

  • Type

    Short course

  • Methodology

    Inhouse

  • Class hours

    6h

  • Duration

    1 Day

  • Start date

    Different dates available

With new accounting standards now requiring accountants to show financial instruments at their current market value, skills in understanding pricing models and techniques are likely to grow in demand.

This course will equip you with the knowledge necessary not only to price structured products but also to validate those prices and to use external market data to determine prices.

It is primarily designed to help accountants and auditors in the implementation of IFRS 2. IAS 39 issues will also be covered. The new requirements of IFRS 9 which is due to replace IAS 39 in late 2010 are also examined.

Unlike other courses of this nature, emphasis is placed on practical applications rather than elaborate formulae and theories and, in particular, on the practical use of such financial instruments.

Participants will be required to bring a calculator to the course.

This course can be delivered in-house for a number of people.

For more information about the course, trainer or to request a quote, please contact the center.

Facilities

Location

Start date

Inhouse

Start date

Different dates availableEnrolment now open

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Reviews

Subjects

  • Financial Instruments
  • Finance
  • Basic Algebra
  • Geometric Progressions
  • Annuities
  • Option Pricing Models
  • Monte Carlo Simulations
  • Yield Curves
  • Forward Interest Rates
  • Swap Interest Rates
  • Discount Factors

Teachers and trainers (1)

Former Practitioner

Former Practitioner

Contact us for details enquiries@redcliffetraining.co.uk

Course programme

Course Content:

Basic Algebra

  • Simple v Compound Interest Rates
  • Frequency of Compounding
  • Exponentials and Natural logarithms
  • Manipulation of Exponential functions
  • Interest Conventions
  • Application to Money Market Instruments
  • Constructing a simple yield curve using discount prices

Application to Practical Situations

  • Geometric Progressions
  • Annuities
  • Mortgage Calculations
  • Leasing Calculations
  • Basic Differentiation
  • Application of Differentiation Principles
  • Taylors Expansion
  • Application of Duration and Convexity

Option Pricing Models

  • Deriving Black Scholes
  • Deriving and using formulas for Delta, Gamma and Theta
  • Risk Arbitrage
  • Normal Distribution Curve

Monte Carlo Simulation

  • Option Pricing with Monte Carlo
  • Pricing of interest rate products using Monte Carlo
  • Participants in the Swap Market
  • Swap Pricing Basics
  • Forward Rates
  • Interest Rate Risks

IAS 39/IFRS 9 Introduction to Swaps on Spreadsheets

  • Overview Fixed Rate Agreements
  • Valuing Fixed Rate Agreements
  • Yield Curve and Forward Interest Rates
  • Constructing Swap Interest Rates
  • Application of Discount Factors
  • Generic Interest Rate Swaps in one currency

Other Issues

  • Calculation and Interpretation of Duration and Convexity
  • Application of Bond valuation to Interest Rate Derivative
  • Treasury Bill Futures
  • Forward and Future Prices

Discounts available for multiple participants:

  • 3-4 participants: 15% discount per participant
  • 5-6 participants: 20% discount per participant
  • 7-8 participants: 25% discount per participant
  • 9 or more participants: 30% discount per participant

See related categories

Pricing Financial Instruments

£ 3001-4000

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