Module 3: Introduction to Hedging on the LME with Options

1 day 15 Dec 2016, Dubai UAE £800.00 Download brochure Add to basket
1 day 23 Feb 2017, London UK £800.00 + VAT* Download brochure Add to basket
1 day 30 Mar 2017, Dubai UAE £800.00 Download brochure Add to basket

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Overview

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

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.

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.

Pre-requisites

Previous knowledge of the LME and LME future contracts.

 

Who should attend

This course is ideal for delegates with little or no knowledge of non-ferrous metals futures and metals options and the management of price risk on the LME. It is aimed at miners, producers, smelters, refiners and recyclers; brokers, bankers, financiers, treasurers, CFOs, controllers and financial risk advisors; traders and merchants; fabricators and end users.

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

London
Emma Jenkins - Metals Only

Emma has a First Class Honours degree and gold medal in Mathematics from Trinity College, Dublin, and over 20 years of banking experience.

She commenced her banking career with Goldman Sachs and initially her roles were mathematically focussed and she worked as a quantitative analyst on swaps, interest rate options and FX desks implementing pricing and risk management models for traders, salespeople and risk managers. She became involved in commodity markets in the late 1990s when she joined Credit Suisse in Sydney as a marketer of structured gold derivative products. Shortly thereafter she transferred to the London office and was instrumental in the integration of the short-date flow and structured derivatives businesses.

At Credit Suisse, she developed her specialised commodity skills through vanilla and structured transactions on a physical and paper basis with the spectrum of participants in the metals markets, in both derivative and lending markets.

She subsequently moved to Macquarie Bank as a director specialising in precious and base metals derivatives sales. Her clients used both LME futures and OTC derivatives. She worked closely with the bank's base metals traders to determine how the bank would hedge exotic OTC derivatives with LME futures.

Delegates on her courses have ranged from central banks and regulators, large miners, traders and manufacturers, wealth managers, through to small import/export businesses, thereby giving her a unique insight into the issues facing the many market participants.

Her consultancy work has included:

  • Valuing embedded derivatives in base metals physical contracts and determining appropriate derivative hedges
  • Negotiating copper prepaid financings with long-dated copper options
  • Analysing the metal risk position of a copper components manufacturer and recommending a hedge strategy combining physical, LME and OTC products
  • Significantly reducing an insurance claim arising from delayed metal shipments by demonstrating how a derivative hedge would have reduced losses
  • Acting as an expert witness on behalf of an LME member with respect to disputed aluminium OTC swaps
Dubai
Emma Jenkins - Metals Only

Emma has a First Class Honours degree and gold medal in Mathematics from Trinity College, Dublin, and over 20 years of banking experience.

She commenced her banking career with Goldman Sachs and initially her roles were mathematically focussed and she worked as a quantitative analyst on swaps, interest rate options and FX desks implementing pricing and risk management models for traders, salespeople and risk managers. She became involved in commodity markets in the late 1990s when she joined Credit Suisse in Sydney as a marketer of structured gold derivative products. Shortly thereafter she transferred to the London office and was instrumental in the integration of the short-date flow and structured derivatives businesses.

At Credit Suisse, she developed her specialised commodity skills through vanilla and structured transactions on a physical and paper basis with the spectrum of participants in the metals markets, in both derivative and lending markets.

She subsequently moved to Macquarie Bank as a director specialising in precious and base metals derivatives sales. Her clients used both LME futures and OTC derivatives. She worked closely with the bank's base metals traders to determine how the bank would hedge exotic OTC derivatives with LME futures.

Delegates on her courses have ranged from central banks and regulators, large miners, traders and manufacturers, wealth managers, through to small import/export businesses, thereby giving her a unique insight into the issues facing the many market participants.

Her consultancy work has included:

  • Valuing embedded derivatives in base metals physical contracts and determining appropriate derivative hedges
  • Negotiating copper prepaid financings with long-dated copper options
  • Analysing the metal risk position of a copper components manufacturer and recommending a hedge strategy combining physical, LME and OTC products
  • Significantly reducing an insurance claim arising from delayed metal shipments by demonstrating how a derivative hedge would have reduced losses
  • Acting as an expert witness on behalf of an LME member with respect to disputed aluminium OTC swaps

Venue

Dubai

Dubai Hotel

This programme takes place on a non-residential basis at a central Dubai hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Dubai has an incredible number of hotels. Courses held here are mainly held at the J.W. Marriot hotel, Sheraton Dubai Creek and Le Meridien all in central Dubai.
 
J.W. Marriott Hotel – Abu Baker Al Siddique Road, PO Box 16590, Dubai, U.A.E
Phone +971 4 607 7811; Fax +971 4 607 7011
www.marriott.com
 
At the JW Marriott Dubai you will enjoy luxury on your terms; impeccable service and elegant surroundings allow you to relax and focus on your own agenda. With 344 luxuriously appointed rooms and suites the J.W. Marriott provides an oasis of calm in a busy city while the award-winning restaurants have the recipe for satisfying a taste for international flavour.        
 
Sheraton Dubai Creek – Baniyas Street, PO Box 4250, Dubai, U.A.E
Phone +971 4 228 1111; Fax +971 4 221 3468
www.starwoodhotels.com
 
After undergoing a complete renovation, the Sheraton Dubai Creek Hotel& Towers reopened October 10th, 2002 with a fully refurbished interior and exterior. The 255 room hotel now offers more creek-view rooms, redesigned atrium lobby, outstanding food and beverage facilities, upgraded rooms with state-of-the-art data connectivity, and Dubai's newest conference facilities. 

Le Meridien – PO Box 10001, Airport Road, Dubai, U.A.E
Phone +971 4 282 4040; Fax +971 4 282 5540
www.lemeridien-dubai.com
 
Le Meridien Dubai is a five star deluxe hotel built on two floors and surrounded by 38 acres of landscaped gardens. The hotel is elegantly furnished with a french accent that incorporates the individual character and flair of the local culture. The hotel is minutes away from the commercial districts and shopping centres and a short distance from Dubai International Airport. Facilities include a choice of 15 restaurants and bars, 24-hour room and laundry service, two fully equipped business centres and a state-of-the-art Spa and fitness club.

 
 

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.



We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

Agendas are localised, please select your preferred location.

Programme

  • Review of LME contracts and prompt date structure
  • Price risk management – what is it?
  • What is hedging?
  • Hedging examples with futures
  • Hedging examples with LME swaps
  • Workshops
  • LME Traded Options
  • Hedging examples with options
  • Traded Average Price Options (TAPOs)
  • Workshops
  • Questions and answers

What will you learn?

  • Learn how effective price risk management can be achieved with LME contracts
  • Understand the benefits of hedging with futures
  • Develop a knowledge of option hedging strategies and their outcomes
  • Work through interactive workshops on hedging futures & options

Benefits for you
This course is ideal for delegates with little or no knowledge of non-ferrous metals futures and metals options and the management of price risk on the LME. It is aimed at miners, producers, smelters, refiners and recyclers; brokers, bankers, financiers, treasurers, CFOs, controllers and financial risk advisors; traders and merchants; fabricators and end users.

Benefits for your organisation
Organisations can benefit from having employees who fully understand how to use futures and traded options as part of a price risk management programme.

Pre-requisites
Previous knowledge of the LME

**You must have previous knowledge of the LME and LME future contracts to attend this course**

 Programme

  • Hedging with futures
  • LME options
  • Options terminology quiz
  • Risk implications and motives
  • Hedging with options
  • Hedging combinations
  • Options pricing models
  • TAPOs
  • Selling an option

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

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.

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.

Pre-requisites
Previous knowledge of the LME and LME future contracts.

Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product