Market Risk Management and Capital Markets
- Duration: 120 minutes
- Skill Level: Advanced
- Language: English
Market risk management refers to the capital markets tools and techniques used to hedge the risk of adverse market movements. These include futures, forwards, and options in the fixed-income and foreign exchange markets; the theory of hedging; and value at risk. Options valuation; “the Greeks”; and definitions and formulas relating to parametric techniques, Monte Carlo simulations, and historical value-at-risk shortcuts are important tools in assessing and managing market risk. Key concepts include: basic option positions (puts and calls, buying and selling); the Black-Scholes model and its variations; options sensitivities (delta, gamma, vega, rho and theta); barrier options; calculating hedge ratios; translating volatility to different confidence levels and time horizons; and put-call parity and interest rate parity.
Current Streaming Courses
"The secret to getting ahead is getting started..." ~ Mark Twain