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ADVANCED FINANCIAL DERIVATIVESMaritime Professionals CourseCourse GuideOrion Training Center for Maritime Professionalsis a Certified Training Institute in accordance withABS G-CMET and STCW Regulation I/8Orion Training Center for Maritime Professionalsis Certified as compliant with the QualityManagement System ISO 9001 by Bureau VeritasISO 9001:2015BUREAU VERITASCertificationOrion Training Center for Maritime Professionalswww.oriontraining.eu

ADVANCED FINANCIAL DERIVATIVESPREAMBLEOrion Training Center for Maritime Professionals is a unique Vocational Training Provider,on a wide spectrum of fields in the Maritime Industry, for people who seek Certified Training.Orion Training aims at strengthening the human capital in the Maritime Industry,by increasing its employability and developing its competitiveness in one of the most challengingand capital intensive industries globally.Drawing from the vast experience of Greek and International Professionals in the shipping sector,Orion Training aims at covering the need for Certified Professional Training in a uniqueand technologically advanced way.By delivering on-line, state of the art Courses from Experienced Professionals, in a user-friendly format,we bring knowledge where really needed, when needed.Visit our website www.oriontraining.eu to see all courses and training options for individuals andOrganisations.SCOPE OF THE COURSE - LEARNING OUTCOMESThe Course aims at introducing attendees to the world of Financial Derivatives and Risk Management.Importantly, many practical and hands-on topics are covered, thus extending knowledge beyondwhat is regularly found in main text books and relevant courses.The Course also offers important advanced topics coverage through specialized primers.The Course covers the need for in-house technical and practical knowledge of financial Risk Managementwith the use of various types of Financial Derivatives, in many industries, including the Maritime Industry.It is a highly technical subject, as the need for thorough and in-depth understanding of fundamentalconcepts is of essence for business practitioners, both at operational and at managerial levels.Attendees of the Course will be able to: Understand the fundamental pillars of all major types of Financial Derivatives and especially OptionContracts. Adopt a Risk Manager thinking perspective when addressing market decisions and trading of OptionContracts. Understand, structure and price specific derivatives instruments that help the enterprise to modifyits cash flows and risk profile, according to its strategic yield/risk framework. Understand key technical and mathematical concepts in derivatives pricing and hedging, helpingthem to better and more efficiently execute trades in the real world.www.oriontraining.eu

ADVANCED FINANCIAL DERIVATIVESSPECIAL FEATURES - ADDITIONAL MATERIALThe Course offers many special focus primers that cover advanced topics in Financial Derivatives,not easily found elsewhere.The availability and readiness of the Instructor for 9 months to answer queries in relation to theadvanced material, guarantees the understanding of the topics by all Attendees.The course provides an accompanying Options Pricer in .xls format for Attendees to betterunderstand the fundamental concepts of Options prices and their sensitivities to various parameters.ELIGIBLE PROFESSIONALS - BENEFICIARIES - WHO IS THIS COURSE FOR: Shipping Industry professionals working in the financial and/or risk management departmentof enterprises, seeking to understand and practically implement hedging/risk takingor cash flow management strategies. Professionals seeking to increase their employability across many industries,including the Shipping Industry. New entrants in the Shipping Industry, specialized in financial risk management and Derivativestrading (i.e. BSc & MSc graduates). Banking professionals specialized in the Shipping sector, seeking to acquire a solid andpractical understanding of Risk Management and Financial Derivatives. Professionals in the Financial sector seeking to get a deeper knowledge of Derivatives and practicalaspects of Financial Markets.INSTRUCTORDr Konstantinos Theodoropoulos is a Financial Risk manager – Proprietary Trader, with ongoingprofessional financial derivatives experience of 13 years. He is a banking industry practitioner,working as a portfolio risk manager in a Large Greek bank for the last 12 years. He has tradedand executed various types of derivates transactions over the years, as well as managed differenttypes of financial instruments portfolios. He holds a Ph.D. in Shipping Derivatives and Risk Managementfrom the University of Piraeus, and is a holder of Professional Risk Management certification by PRMIA.org.www.oriontraining.eu

ADVANCED FINANCIAL DERIVATIVESCOURSE STRUCTUREModule 1: FORWARDS – FUTURES – SWAP CONTRACTSValue of Future ContractsBasis of Futures ContractsFuture Contracts Specs ExampleThe Bund FutureA bond-Underlying to a bond FutureA bond's DV01A bond's DurationA bond's ConvexityCombining DV01 & ConvexityFutures Contracts Concluding RemarksSummary of Non-Linear InstrumentsIntroductionCourse ScopeThe World of DerivativesForward ContractsForward Contracts: Price & ValuationForward Contracts: Cost of CarryA chicken Asset: Benefits & CostsPresent, Future Value & DiscountingFair Forward PriceValue of Forward before settlementForward Contract Profit & Loss DiagramForward Contracts Issues PresentedContract Specs & Counterparty RiskUses of Forward Contracts-HedgingUses of Forward Contracts-SpeculationThe FRA marketAn FRA exampleFRA vs STIRsHow FRAs are DeterminedForward Contracts Concluding RemarksFutures ContractsFutures Contracts DefinitionFuture Contracts SeriesMark-To-Market of FuturesMark-To-Market ExampleCME note on MTMTypes of Future Contracts MarginsSwap ContractsSwap DefinitionInterest Rate Swap ExampleInterest Rate Swap TermsInterest Rate Swap – DiscountingI.R. Swap Terms – ExampleI.R. Swap Payments – ExampleI.R Swap DCF & Zero RatesI.R. Swap Payments – DiagramI.R. Swap - Floating Fixing DatesPar Swap RatesSwap Rates - Taking a view on I. R.Basic Uses of SwapsSwap Interest Rate SensitivitySwap TypesFX SwapsCross Currency Basis SwapsCommodity SwapsSummary of Swap Contractswww.oriontraining.eu

ADVANCED FINANCIAL DERIVATIVESCOURSE STRUCTUREModule 2: OPTION CONTRACTSIntroductionBrief History of OptionsOptions DefinitionOptions Terminal Payoffs at MaturityOptions Payoff Diagrams at MaturityOptions Value Before Maturity DateBlack & Scholes FormulaBlack & Scholes Model AssumptionsGeneralized Black & Scholes ModelThe Greeks SensitivitiesOptions Intrinsic & Time ValueBasic Greeks ChangesVolatility Increases & Prices of OptionsChoice of Expiry in OptionsA volatility View is also neededKey Dates & Key Strike LevelsITM Options better for Normal MovesForwards Better for Directional PlaysOTM Options better for Abnormal MovesDelta Measures Dividend & Equity RiskAdditional Notes on DeltaReplacing Stock with Call or PutMaintaining Options PositionsConverting Options Early, is RareOption Trading StrategiesCall OverwritingPut Overwriting1X2 Call SpreadsNotes on Call Overwriting – ExpiryNotes on Call Overwriting – StrikePut SpreadsCollarsProtection Types1X2 Put SpreadsWays of Paying for ProtectionCalendar StrategiesBullish Option StrategiesLadders Versus 1X2 SpreadsStraddles & StranglesButterfliesSummary of Options StrategiesVolatility Trading with OptionsPut-Call ParityZero Delta Straddles - Strike Above SpotDelta Hedging Removes Underlying RiskDelta Hedging in PracticeGamma ScalpingDelta Hedging on Key DatesOption Trading Rules of ThumbOption Hedging can "Pin" a StockVariance is the Key, Not VolatilityStretching Black-Scholes AssumptionsContinuous Delta Hedging with Known VolProfit from Delta HedgingThe Profit is not Path DependentContinuous Delta Hedging & Unknown VolDiscrete Delta Hedging with Known VolHow Frequency of Hedging Affects PayoutHedging Frequency Reduces Hedging ErrorDiscrete Delta Hedging with Unknown VolCan a Cheap Option Loose Money?Hedging with Implied Vol DeltaBarrier OptionsWorst-Of / Best-Of OptionsOutperformance OptionsLook-Back OptionsComposite & Quanto OptionsSummary of Light Exoticswww.oriontraining.eu

ADVANCED FINANCIAL DERIVATIVESCOURSE STRUCTUREModule 3: OPTIONS PRICERPrimer 2: BLACK & SCHOLES PDE DERIVATIONSIntroductionDescription of PricerLong ATM Call Option becomes ITMPrice ChangeTime ChangeVolatility ChangeLong ATM Put Option Becomes ITMPrice ChangeTime ChangeVolatility ChangeShort ATM Call Option Becomes OTMPrice ChangeTime ChangeVolatility ChangeShort ATM Put Option Becomes ITMPrice ChangeTime ChangeVolatility ChangeConcluding RemarksThe Black-Scholes-Merton PDEIto's Lemma and BSM ModelDerman-Taleb MethodB&S Derivation via the EMAThe Martingale MethodThe Moment Generating FunctionThe Moment-Generating-Function ToolC. Expectations of Geometric ProcessesConverting Asset Price into MartingalesDetermining the Q Probability MeasureThe Implied SDE'sDerivation of B&S with EMMFirst Part of B&S DerivationSecond Part of B&S DerivationPrimer 3: OPTION GREEKS & GRAPHSPrimer 1: NOTES ON PRICING OF DERIVATIVESMarkov & Martingale PropertiesIntroductionThe Markov PropertyThe Martingale PropertyInformation Set & Probability MeasureA Brief SummaryTwo Generic Models for Asset PricesThe Wiener ProcessWiener Process or Brownian Motion?Relevance of SDEsITO's LemmaOptions Sensitivity FormulasGeneralized BSM FormulaDeltaThe behavior of DeltaFutures DeltaElasticityGammaMaximal Gamma & the Illusion of RiskThe Gamma SaddleThe Gamma PercentVegaVega Global MaximumThetaDriftless ThetaTheta-Vega RelationshipRhoGreeks AggregationsNumerical GreeksConcluding Noteswww.oriontraining.eu

ADVANCED FINANCIAL DERIVATIVESCERTIFICATIONUpon successful Course completion, the Certificate of Successful Completion is issued and sentautomatically to attendees.COURSE MATERIAL, DURATION & FREE CONSULTATION PERIODOn-line videos for every module of the course, with accompanying PDF slides and notes availablefor donwload by attendees. Videos can be seen as many times as needed on-line.Accompanying .xls based Options Pricer.The course must be successfully completed (by passing the relevant final on-line Exam)within 9 months from registration/purchase.During this time, the Instructor is always available within 48 hours through email,for questions and queries relevant to the Course.Free 3-month Consultation period (after course successful completion) with the Course Instructorfor any relevant questions and queries.PREREQUISITES Familiarization with derivatives and/or Financial Markets is a merit. No need for previous knowledge of Derivatives is required.DELIVERY METHODFully on-line and self-paced videos with on-line exams and automated Certificate generation.Option for registration in webinar or classroom delivery for groups or corporate clients if requested.CONTACTFor more information on the Courses offered, you may contact: contact@oriontraining.euFor custom Courses and Professional Training you may contact: sales@oriontraining.euWatch our introductory course videos at our Orion Training Center for Maritime ProfessionalsYou Tube Channel and Vimeo Channel.www.oriontraining.eu

Barrier Options Worst-Of / Best-Of Options Outperformance Options Look-Back Options Composite & Quanto Options Summary of Light Exotics . www.oriontraining.eu ADVANCED FINANCIAL DERIVATIVES COURSE STRUCTURE _ Module 3: OPTIONS PRICER Introduction Description of Pricer Long ATM Call Option becomes ITM Price Change Time Change Volatility Change Long ATM Put Option Becomes ITM Price Change .