Explore Some of the Most Popular Equity Derivatives with this New E-Learning Course.DUBLIN Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. , Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. -- Research and Markets (http://www.researchandmarkets.com/reports/c27656) has announced the addition of E-Learning (Electronic-LEARNING) An umbrella term for providing computer instruction (courseware) online over the public Internet, private distance learning networks or inhouse via an intranet. See CBT. Course: Equity Derivatives In finance, an equity derivative is a class of financial instruments whose value is at least partly derived from one or more underlying equity securities. Market participants trade equity derivatives in order to transfer or transform certain risks associated with the to their offering. This course explains the basics of equity derivatives and examines in detail some of the most popular equity derivatives, that is, convertibles and warrants. Valuation and pricing methods for these instruments are also covered. Objectives In this course, you will explore: --The main equity derivative instruments, including stock index options and futures as well as synthetic structures --The fundamentals of convertibles and their valuation --The basics of warrants and the pricing of these instruments The following tutorials are included in this E-Learning course: 1. Equity Derivatives - An Introduction An equity derivative is a derivative instrument Noun 1. derivative instrument - a financial instrument whose value is based on another security derivative legal document, legal instrument, official document, instrument - (law) a document that states some contractual relationship or grants some right whose underlying instrument is a stock or stock index. Hence, the value of an equity derivative is a function of the value of the stock or index. The market for equity derivatives continues to expand with new product structures constantly appearing. This tutorial An instructional book or program that takes the user through a prescribed sequence of steps in order to learn a product. Contrast with documentation, which, although instructional, tends to group features and functions by category. See tutorials in this publication. introduces the most important equity derivatives including, stock and stock index futures Index Futures A futures contract on a stock or financial index. For each index there may be a different multiple for determining the price of the futures contract. Notes: For example, the S&P 500 index is one of the most widely traded index futures contracts in the U.S. and options, warrants and convertibles, structured and synthetic equity derivatives. 2. Convertibles - An Introduction Convertible bonds are interest-bearing securities that give the holder the option of surrendering (converting) the bond for a pre-determined amount of stock (usually the issuers). Convertibles permit issuers to raise finance at a lower financing cost, yet offer investors a higher income than dividends on the underlying stock, as well as offering a conversion privilege conversion privilege See exchange privilege. . The size of the global convertible market is estimated at USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 550bn with over 2,500 individual issues. Growth has been particularly strong in Europe where the market has tripled since the late 1990s. This tutorial looks at the most common types of convertible bonds and the motivations for issuing and investing in them. The mathematics of convertible bonds and their special provisions are also presented. 3. Convertibles - Introduction to Convertible Valuation Convertible bonds are hybrid instruments with characteristics of both traditional bonds and equities. Valuation of convertibles reflects this dual nature. A convertible can be seen as a combination of a non-convertible bond and a call option. When this option is out-of-the money, that is, the bond is unlikely to be converted, the convertible trades (and is valued) as a non-convertible bond. When the option is deep-in-the-money deep-in-the-money Used to describe a call (put) option that has a strike price considerably less (more) than the market price of the underlying stock. A deep-in-the-money option is almost certain to be exercised on or before its expiration. , that is, conversion is likely, the convertible will trade and be priced as the underlying stock. Pricing a convertible that is at-the-money At-the-money An option is at the money if the strike price of the option is equal to the market price of the underlying security. For example, if xyz stock is trading at 54, then the xyz 54 option is at the money. is more complex and requires the use of sophisticated option pricing methods. This tutorial outlines how convertibles are priced and also the factors that influence their prices. 4. Warrants - An Introduction From its humble beginnings Humble Beginnings was an American pop punk band from New Jersey. While never gaining large-scale success, many of the band's members went on to mainstream success with other outfits. in the 1980s, when the market developed out of the need for Japanese corporations with relatively poor credit ratings to raise cheap debt, the warrant market has continued to thrive up to the present day. It has changed beyond recognition and now represents both an important source of funding for a variety of borrowers, in addition to being a highly lucrative investment market for many unit trusts. The market is noted for its ability to develop new and innovative features, as it strives meet the requirements of diverse groups of investors around the world. In this tutorial, you will learn about the different types of warrants. You'll also learn about how warrants compare with other similar types of securities. 5. Warrants - Pricing The popularity of covered warrants has been a recent development within the warrants market. Simultaneously, the market for traditional warrants has declined in importance. A covered warrant enables an investor to buy or sell an underlying asset at a pre-determined price. The underlying asset is usually a stock, but can also be a stock index, bond, commodity or other asset. This tutorial will primarily focus upon covered warrant pricing. However, the pricing of traditional warrants will also be considered. For more information visit http://www.researchandmarkets.com/reports/c27656 0 |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion