Equity Derivatives - Part 4

Equity Derivatives - Part 4

Overview

An equity index swap is a contractual agreement between two parties to exchange cash flows or streams of payment, with one stream linked to the performance of an equity index and the other stream linked to an interest rate index. These swaps provide a way of synthetically investing in a stock market index and replicating cash investments in the underlying, resulting in a reduction in costs.

This tutorial discusses the structure of equity index swaps, along with the associated cash flows. It also describes the role of a swap dealer, the pricing of equity swaps and other related issues.

Objective

On completion of this tutorial, you will be able to:

- Describe the mechanics and structure of an equity index swap
- Calculate the payments associated with the different legs of an equity swap
- Define the role of the equity swap dealer and recognize how equity swaps are priced
- Identify the risks involved in equity index swaps and distinguish between equity swap variants

Content

Topic 1: Structure & uses of Equity Index Swaps
Topic 2: Equity Index Swap Payments
Topic 3: Risks & Variations of Equity Index Swaps
Topic 4: Role of the Swap Dealer & Pricing

Details

Code
TEPDS17000801
Venue
ePlatform
Language
English
Level
Intermediate
Hours
SFC:1.5, PWMA:1.5
Fees
All Member: HK$420
Non-Member: HK$585
Staff of Corporate Member: HK$420