Subject: derivatives i training course - june 4 th and 5 th
we will be offering derivatives i training on - site . if you are interested in attending , please let amy fitzpatrick know no later than may 21 st .
derivatives i - applied energy derivatives
presented by paradigm strategy group
date : monday , june 4 th and tuesday , june 5 th
time : 8 : 00 am to 5 : 00 pm
this course is appropriate for all employees wishing to obtain a practical understanding of the basic natural gas and power derivative structures that are traded and marketed today . an emphasis is placed on understanding how financial tools are added to physical structures to meet the risk management needs of clients .
participants attending this seminar will be able to :
formulate customer hedge strategies based on a solid understanding of risk ; its impact on capital structures and approaches to its mitigation .
develop and interpret forward prices in the context of arbitration disciplines , as well as understand the divergences from these disciplines that are characteristic of energy prices .
identify marketing opportunities through an understanding of both the forward curve and the distortions created by the physical system of production and transportation .
assemble the pricing of a transaction from a benchmark price curve .
devise cost - reducing deal structures for gas storage from an understanding of price curves and their components .
exploit differences in locational pricing with insights into the relationship between basis and transportation / transmission .
structure a natural gas and power swap to hedge a company ' s risk position , explaining its risks and benefits as a risk management tool .
price a swap from the price curve and customize the structure to meet various customer needs including earnings , cash flow and embedded financing .
apply basis swaps to either mitigate locational risk or to achieve a more favorable risk / reward position by altering the index location .
attain a fluency in language concepts and hedging application of options .
package strips of options to create caps , floors and zero - premium collars .
create structures that provide energy users with sub - index pricing using embedded options .
recognize options embedded in common supply contracts and their pricing implications , including swing , double - ups and index contracts with maximum prices , etc .