Exotic Options - Part 1

Exotic Options - Part 1

Overview

The basket and spread options market has seen significant growth over the past couple of decades since the CBOE introduced cash-settled options on a basket of stocks in 1983. Both basket and spread options are exotic structures from the multivariate or multifactor family of options. This means that their payoffs are based on the performance of more than one asset, unlike conventional options whose payoffs are driven by the performance of a single asset.

This tutorial looks at basket and spread options in detail, examining their features and characteristics, as well as the different types available in the market.

Objective

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

- Define basket and spread options and distinguish them from other options
- List the main determinants of basket and spread option prices
- Explain the importance of correlation and volatility in terms of basket and spread options
- Distinguish between the different types of basket and spread options

Content

Topic 1: The Basics of Basket & Spread Options
Topic 2: The Determinants of Basket & Spread Options
Topic 3: Correlation & Volatility Considerations for Basket & Spread Options
Topic 4: Types of Basket & Spread Options

Details

Code
TEPDS17000901
Venue
ePlatform
Language
English
Level
Intermediate
Hours
SFC:1.0, PWMA:1.0
Fees
All Member: HK$280
Non-Member: HK$390
Staff of Corporate Member: HK$280