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This
program builds on the knowledge of core derivative products and concepts
acquired in Applied Energy Derivatives.
Participants examine the more complex structures being used in the market
to lower costs or reduce risk and learn how to seek out business opportunities
arising from both existing transactions and new situations.
The Program
This
course examines the business potential in combining financial transactions such
as swaps with physical supply transactions that clients have already booked.
Participants review swap valuation techniques so that they can monetize a
swap and look at off-market pricing strategies and their customer uses.
The
Practical
Options
are pervasive in the energy industry.
They are embedded in a wide range of locations …from supply agreements
to physical operations.
If you work in this industry, you need to understand how options are
valued and managed.
The Advanced Structures & Marketing program addresses how the
standard option model operates and how the structure of energy markets
constrains this model.
The course also examines the methodology of a dynamic hedging process and
gives participants an in depth look at swaptions.
Download PDF File
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At the
conclusion of this program participants will be able to:
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Demonstrate familiarity with the most appropriate
methods to reverse a derivative position
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Present transaction winning structures to
customers
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Discuss off-market swap pricing structures and
customer strategies
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Discuss the process of monetizing a profitable
swap transaction
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Understand the dynamic process dealers use to
extract cash value from options
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Identify the limitations of applying traditional
option pricing models to energy markets
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Recognize how volatility and time value affect
derivative pricing models
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Interpret the arcane language of options—delta,
gamma and vega—while avoiding complex mathematics
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Compare and contrast swaptions with other
derivative products
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Begin
to unbundle complex
derivative
structures into their
basic derivative
components
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