Risk Management Tools and Practices

What you'll learn

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  • Define the basis and the various sources of basic risk, and explain how basis risks arise when hedging with futures.
  • Define cross hedging and the minimum variance hedge ratio and hedge effectiveness.
  • Define and interpret the optimal number of futures contracts needed to hedge an exposure, including a “tailing the hedge” adjustment.
  • Demonstrate how to use stock market index futures contracts to change a stock portfolio’s beta.
  • Understand covered call and protective put strategies.
  • Understand the purpose and pay-offs of various option spread strategies.
  • Describe the ALM function of a typical commercial bank.
  • Understand balance sheet risks associated with funding gaps and duration gaps.
  • Define, compare and contrast economic capital, risk capital and regulatory capital.

Offered By:  NYIF

Course Duration:  4 Weeks

  • 25,676