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Understanding Options - Behaviour and Hedging


The objective of the Understanding Options - Behaviour and Hedging workshop is that participants gain an understanding of how options behave as the inputs to the pricing model vary. The knowledge of the nature of the sensitivity of the option will then be applied to a discussion of hedging techniques for options positions and portfolios. It is assumed that participants have a prior knowledge of the definitions of puts and calls, standard payoff diagrams, and have been introduced to the Black-Scholes pricing model.

With a strong emphasis on worked examples this workshop will cover

  • the option 'greeks': delta, gamma, vega, theta, rho
  • hedging option positions
  • synthetic option replication

The Understanding Options - Behaviour and Hedging workshop is an AFMA (Australian Financial Markets Association) workshop presented in Australia by Alex Palfi of Tykoh Training. Click here for more details or to register.

Resources

Click here to download a spreadsheet on this topic given to participants at the conclusion of the workshop.