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CSI will be performing system maintenance on Saturday May 11th from 5 a.m. until 1 p.m. ET. You will not have access to your “myCSI” student account, nor will you be able to book, cancel or reschedule exams during this time. You can still access your online course materials by visiting connect.csi.ca then connecting to “Blackboard Learn”.

What will you learn about?

  • The supply and demand fundamentals of equity, currency, interest rate and commodity (agricultural, energy and metals) markets
  • How to measure and mitigate risks in financial and commodity markets and industries utilizing both exchange-traded and OTC derivatives including swaps, FRAs, caps and collars
  • Fundamental and technical analysis of futures markets
  • Advanced futures strategies and pricing
  • Advanced option pricing, volatility and sensitivity
  • Advanced options strategies including bull, bear, volatility and income strategies
  • Options strategies and technical analysis
  • How structured products including ETFs utilize derivatives in their creation

What is the course syllabus?

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Section 1 - Understanding Underlying Markets

Chapter 1 - The Interest Rate Market

Topics covered in this chapter are:

  • Characteristics of Interest Rate Instruments
  • Deposits and Loans
  • Securities
  • The Term Structure of Interest Rates

Chapter 2 - The Foreign Exchange Market

Topics covered in this chapter are:

  • What Is the Foreign Exchange Market?
  • Exchange Rate Quotations
  • Determinants of Foreign Exchange Rates
  • Spot and Forward Markets
  • Structure of a Foreign Exchange Operation

Chapter 3 - An Overview of the Crude Oil Industry

Topics covered in this chapter are:

  • History of Crude Oil
  • Structure of the Oil Industry
  • Crude Oil Trading
  • Major Participants in Crude Oil Risk Management
  • Oil Market Pricing
  • Forward Pricing
  • Crude Oil Investment Vehicles

Chapter 4 - The Natural Gas Market and Industry Overview

Topics covered in this chapter are:

  • A Primer on Natural Gas
  • History and Regulation of the Natural Gas Industry
  • Structure of the Natural Gas Industry
  • Uses of Natural Gas
  • Trading in Natural Gas
  • Natural Gas Pricing
  • Natural Gas Investment Vehicles

Chapter 5 - An Overview of the Gold Industry and Markets

Topics covered in this chapter are:

  • History of Gold
  • Structure and Size of the Gold Industry
  • Sources of Gold Demand
  • Sources of Gold Supply
  • The Case for Gold as an Investment
  • Spot Gold Market Pricing
  • Forward Gold Market Pricing
  • Gold Investment Vehicles
  • Precious Metals Mining Company Analysis

Chapter 6 - Agricultural Markets

Topics covered in this chapter are:

  • The Wheat and Corn Industries
  • Overview of the Wheat and Corn Markets
  • Price Discovery in the Wheat and Corn Markets
  • Investment Vehicles
  • Appendix: Analysis of the Wheat Market

Section 2 - Pricing of Forward-based Contracts

Chapter 7 - Pricing of Forward-Based Contracts

Topics covered in this chapter are:

  • The Pricing of Forward-Based Commodity Contracts
  • Forward Pricing in the Energy Sector
  • Forward Gold Market Pricing
  • Agricultural Forward Market Pricing
  • The Pricing of Forward-Based Interest Rate Contracts
  • The Pricing of Forward-Based Equity Contracts

Section 3 - Advanced Trading Techniques using Derivatives

Chapter 8 - Option Pricing and Volatility

Topics covered in this chapter are:

  • Price Versus Value
  • Intrinsic Value
  • Time Value
  • Factors that Affect the Value of an Option
  • Option Pricing Models
  • Volatility

Chapter 9 - Option Sensitivities

Topics covered in this chapter are:

  • What Are Option Sensitivities?
  • Delta
  • Gamma
  • Vega
  • Theta
  • Rho
  • The Interrelationship of the Sensitivities
  • Calculating Portfolio Sensitivities

Chapter 10 - Bull and Bear Spreads

Topics covered in this chapter are:

  • What is an Option Spread?
  • Bull Call Spread
  • Bear Call Spread
  • Bear Put Spread
  • Bull Put Spread

Chapter 11 - Volatility Strategies I

Topics covered in this chapter are:

  • Overview of Volatility Strategies
  • Long Straddle
  • Long Combination (Strangle)
  • Short Straddle
  • Short Combination
  • Long Butterfly
  • Short Butterfly

Chapter 12 - Volatility Strategies II

Topics covered in this chapter are:

  • Call Backspread
  • Put Backspread
  • Ratio Call Spreads
  • Ratio Put Spreads
  • Time Spreads

Chapter 13 - Hedging Strategies

Topics covered in this chapter are:

  • Protective Puts
  • Married Puts
  • Protective Calls
  • Covered Calls as a Hedge
  • Collars

Chapter 14 - Income Strategies

Topics covered in this chapter are:

  • Naked Option Writing
  • Covered Call Writing

Chapter 15 - Option Strategies and Technical Analysis

Topics covered in this chapter are:

  • Option Patterns versus Underlying Stock Price Patterns
  • When to Implement an Option Strategy
  • Reversal Patterns
  • Continuation Patterns
  • Sideways Trading Markets
  • Options as Market Indicators

Chapter 16 - Futures Spread Strategies

Topics covered in this chapter are:

  • Benefits of Spreads
  • Types of Spreads
  • Risks of Spread Trading

Chapter 17 - Fundamental Analysis of Futures Markets

Topics covered in this chapter are:

  • Supply and Demand Analysis
  • Types of Fundamental Analysis
  • How Government Programs and International Agreements CanAffectPrices
  • Major Limitations in Fundamental Analysis

Chapter 18 - Technical Analysis of Futures Markets

Topics covered in this chapter are:

  • Sentiment Indicators
  • Volume and Open Interest
  • Seasonality
  • Combining Technical and Fundamentals
  • Trading Systems and Risk Management
  • A Simple Trading Plan

Section 4 - Advanced Risk Management Techniques using Derivatives

Chapter 19 - Hedging Equity Market Risk

Topics covered in this chapter are:

  • Identifying Equity Risk
  • Managing the Risk of a Single Stock Using Equity Options
  • Managing the Risk of an Equity Portfolio Using Stock IndexFutures
  • Managing Equity Risk Using Equity Swaps
  • Managing the Risk of Bought Deal Transactions

Chapter 20 - Hedging Interest Rate Risk

Topics covered in this chapter are:

  • Identifying Interest Rate Risk
  • Measuring Interest Rate Risk
  • Managing the Risk of Future Borrowing Costs
  • Managing the Risk of Current Borrowing Costs
  • Managing the Risk of Bonds with Bond Futures Contracts

Chapter 21 - Hedging Foreign Exchange Risk

Topics covered in this chapter are:

  • Which Entities Are Exposed to Foreign Exchange Risk?
  • Measuring Foreign Exchange Risk
  • Measuring the Risk of Foreign Securities
  • Managing Translation and Transaction Risk
  • Managing the Currency Risk of Foreign Securities and Portfolios

Chapter 22 - Hedging Commodity Price Risk

Topics covered in this chapter are:

  • Identifying Commodity Price Risk
  • Hedging Energy Price Risk
  • Hedging Energy Price Risk Using Exchange-Traded Derivatives
  • Hedging Energy Price Risk Using OTC Derivatives
  • Hedging Metal Price Risk
  • Hedging Agricultural Price Risk

Section 5 - Using Derivatives to Structure Investment Products

Chapter 23 - Principal Protected Notes (PPNs)

Topics covered in this chapter are:

  • Principal-Protected Notes (PPNs) – What Are They?
  • PPN Structures and the Use of Derivatives
  • CPPI and Zero-Coupon Bond Plus Call Option Structures— Key Differences

Chapter 24 - Derivative-Based ETFs

Topics covered in this chapter are:

  • Commodity ETFs
  • Swap-Based ETFs and the Synthetic Replication ofIndexes
  • Leveraged and Inverse ETFs

How will you learn?

CSI’s online learning system helps you meet your study goals. You’ll benefit from:

  • Textbook material in PDF and printed format
  • Review questions included throughout the course
  • Course updates
  • End of section quizzes to earn CE credits
  • Access to CSI’s academic support specialists

Course Completion Notice

On successful completion of this course you will be able to download a Notice of Course Completion available through your student profile. This will remain on your profile as formal confirmation of course completion.

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