Introduction to Hedging on the LME with Options

This course is designed to introduce you to the terminology and characteristics of traded options, the principles of how option pricing models work and hedging strategies. The course will highlight how the theory of hedging with options can be implemented at an organisational level.

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Is this course for you?

This course is suitable for you if you have little or no knowledge of traded options and want to know more about the use of options as a price risk management tool in the metal industry.

What will you learn

  • Learn about options market participants and their risk profiles
  • Develop a knowledge of option hedging strategies and their outcomes
  • Learn the practical skills required when applying options theory to hedging scenarios in our interactive workshop

Benefits for you

Get a comprehensive understanding of the terminology and characteristics of traded options and TAPOs (Traded Average Price Options) and the outcome of using different hedging strategies through this workshop-based course.

Pre-requistes

Previous knowledge of the LME and LME future contracts.

Benefits for your organisation

Organisations can benefit from having employees who fully understand how to use traded options as part of a price risk management programme.

Programme

  • Basic concepts, uses and benefits of hedging with an options contract
  • Options terminology
  • Put and call options
  • Risk implications and motives
  • Hedging futures vs. options
  • TAPOs
  • Options workshops
  • Option pricing
  • Hedging combinations
  • Zero cost strategies


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Contact us

For further information please email our Education team.