FX Options

Course Overview

This comprehensive course on FX Options is meticulously designed to cater to both beginners and seasoned market participants, offering a deep dive into the fundamentals and risk management of FX options.

You will explore the mechanics, definitions, and types of options, alongside payoff diagrams, put-call parity, and their practical applications in speculation, hedging, and volatility trading through various option combinations like spreads, collars, straddles, and butterflies.

The course further demystifies option pricing with an intuitive approach, binomial trees, and an introduction to the Black-Scholes model, complemented by case studies on option combination payoffs and pricing.

Participants will learn about crucial risk management metrics and principles, including an in-depth understanding of the Greeks – delta, vega, theta.

Learning Objectives

• Gain a solid foundation in FX options, including their mechanics, definitions, and types, enabling both beginners and experienced participants to navigate the complexities of the FX options market effectively.
• Understand the construction and interpretation of payoff diagrams, and master the concept of put-call parity, along with its significance in identifying arbitrage opportunities in the FX options market.
• Explore the practical applications of FX options in financial strategies, learning how to use various option combinations such as spreads, collars, straddles, and butterflies for speculation, hedging, and managing volatility.
• Delve into the fundamentals of option pricing, acquiring the skills to apply intuitive methods, binomial trees, and gain an introductory understanding of the Black-Scholes model, enhancing decision-making in trading and risk management.
• Apply case studies to comprehend the real-world application of option combination payoffs and the intricacies of option pricing, fostering a practical learning environment for participants to translate theory into practice.
• Acquire a comprehensive understanding of risk management metrics and principles in the context of FX options, focusing on the critical roles of the Greeks – delta, vega, and theta – in managing and optimizing the risk-reward profiles of FX options portfolios