Trustees' Futures & Options Overview

Trustees' Futures & Options Overview Training Course

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