Derivatives and Hedging Instruments
Derivative instruments are financial contracts whose value depends on another financial asset. Options and futures contracts are the most common derivatives. Such contracts can be used to hedge financial exposure. Hedging refers to the practice of reducing or fully eliminating the risk associated with holding a volatile asset. If used properly, hedging transactions can take a lot of worry and stress out of investing. With the volatility of the Kenyan financial markets, hedging currency and interest would be the prudent practice.
We have designed this course to show the products in a highly practical way, without over-complication, with clear illustrations of each so that participants may readily understand them and the role the bank plays.
Key topics covered include:
- Introduction to derivative Instruments and Markets
- Pricing and valuation of interest rate and currency
- Derivative applications: its uses and benefits
Who should attend?
- Risk Control, Risk Management and Audit Personnel
- Corporate Account Officers
- Corporate Treasury
- Asset Managers