Course Outline

  • Introduction – forward markets
  • Pricing futures
    • Cost of carry pricing model
    • Implied forward rates
  • Exchange traded futures – the South African Futures Exchange
    • Index futures
    • Individual equity futures
    • Interest rate futures
    • Basis, contango and backwardation
  • Futures market participants
  • Application of futures contracts
  • Hedging
  • Speculating
  • Arbitrage

Outcomes

On completion of the program the delegate will be able to:

  • Understand The Terminology Of The Futures Market
  • Distinguish Between The Forward Market And The Futures Market
  • Calculate The Fair Value Future Price For The Following:
  • A Commodity, An Exchange Rate, An Interest Rate, An Equity Index
  • Understand The Contango, Backwardation And Basis Of A Futures Contract
  • Identify The Participants In The Futures Market
  • Understand The Role Of Futures In Arbitrage, Hedging, Speculation