Learning Objectives & Matches
LO 2: Appreciate the economic rationale for futures markets
Formulate recommendations, policies, or plans to solve economic problems or to interpret markets.
Buy or sell stocks, bonds, commodity futures, foreign currencies, or other securities on behalf of investment dealers.
Adapt other designers' ideas for the mass market.
Explain stock market terms or trading practices to clients.
Provide application or analytical support to researchers or traders on issues such as valuations or data.
Monitor changes affecting supply and demand, tracking market conditions, price trends, or futures markets.
Conduct market research and analyze industry trends.
Attend investment briefings or consult financial media to stay abreast of relevant investment markets.
Order stock, and price and shelve incoming goods.
Keep informed of industry trends and deals.
LO 3: Understand market manipulation and financial crises in futures markets
Explain stock market terms or trading practices to clients.
Attend investment briefings or consult financial media to stay abreast of relevant investment markets.
Monitor changes affecting supply and demand, tracking market conditions, price trends, or futures markets.
Analyze price proposals, financial reports, and other data and information to determine reasonable prices.
Provide expertise to help financial institutions manage risks and maximize returns associated with investment products or credit offerings.
Inform other traders, managers, or customers of market conditions, including volume, price, competition, or dynamics.
Buy or sell stocks, bonds, commodity futures, foreign currencies, or other securities on behalf of investment dealers.
Coordinate recall or market withdrawal activities as necessary.
Interpret results of financial analysis procedures.
Formulate recommendations, policies, or plans to solve economic problems or to interpret markets.
LO 5: Describe the conception of replication
Duplicate work precisely to replicate characters' appearances on a daily basis.
Arrange for typing, duplication, and distribution of material.
Finish and duplicate drawings and documentation packages according to required mediums and specifications for reproduction, using blueprinting, photography, or other duplicating methods.
Assemble, maintain, or distribute information for library or record systems.
Design or conduct follow-up experimentation, based on generated data, to meet established process objectives.
Review published materials and recommend revisions or changes in scope, format, content, and methods of reproduction and binding.
Assist in laying out material for publication.
Organize information for publication and for other means of dissemination, such as via storage media or the Internet.
Confer with clients, editors, publishers, or producers to discuss changes or revisions to written material.
Maintain production records.
LO 6: Discuss the implications of no arbitrage assumptions in pricing futures and forward contracts
Contract with freight forwarders for destination services.
Order stock, and price and shelve incoming goods.
Study legislation, arbitration decisions, and collective bargaining contracts to assess industry trends.
Study legislation, arbitration decisions, and collective bargaining contracts to assess industry trends.
Ascertain premium rates required and cash reserves and liabilities necessary to ensure payment of future benefits.
Quote prices, credit terms, or other bid specifications.
Determine equitable basis for distributing surplus earnings under participating insurance and annuity contracts in mutual companies.
Assemble sets of assumptions, and explore the consequences of each set.
Explain stock market terms or trading practices to clients.
Negotiate bargaining agreements and help interpret labor contracts.
LO 7: Develop the implied repo rate concept
Develop proposals that include documentation for estimates.
Analyze compensation policies, government regulations, and prevailing wage rates to develop competitive compensation plan.
Quote prices, credit terms, or other bid specifications.
Ascertain premium rates required and cash reserves and liabilities necessary to ensure payment of future benefits.
Explain services or policies to clients, such as debt management program rules, advantages and disadvantages of using services, or creditor concession policies.
Establish and maintain tendering process, and conduct negotiations.
Prepare proposals, quotes, contracts, or presentations for potential solar customers.
Develop, implement, or monitor security valuation policies.
Review, recommend, or approve contracts or cost estimates.
Prepare management recommendations, such as proposed fee and tariff increases or schedule changes.
LO 8: Examine the impact of transactions costs on futures and forward contract prices
Contract with freight forwarders for destination services.
Calculate costs of orders, and charge or forward invoices to appropriate accounts.
Analyze the financial impact of proposed logistics changes, such as routing, shipping modes, product volumes or mixes, or carriers.
Negotiate prices and terms with suppliers, vendors, or freight forwarders.
Order stock, and price and shelve incoming goods.
Analyze price proposals, financial reports, and other data and information to determine reasonable prices.
Provide ongoing analyses in areas such as transportation costs, parts procurement, back orders, or delivery processes.
Track and analyze factors that affect price movement, such as trade policies, weather conditions, political developments, or supply and demand changes.
Conduct cost, material, and efficiency studies for biofuels production plants or operations.
Prepare reports regarding market conditions and merchandise costs.
LO 9: Introduce index arbitrage
Create searchable indices for Web page content.
Devise trading, option, or hedge strategies.
Study legislation, arbitration decisions, and collective bargaining contracts to assess industry trends.
Study legislation, arbitration decisions, and collective bargaining contracts to assess industry trends.
Make bids or offers to buy or sell securities.
Order stock, and price and shelve incoming goods.
Attend investment briefings or consult financial media to stay abreast of relevant investment markets.
Provide application or analytical support to researchers or traders on issues such as valuations or data.
Supply the latest price quotes on any security, as well as information on the activities or financial positions of the corporations issuing these securities.
Select or direct the execution of trades.
LO 10: Describe options markets
Formulate recommendations, policies, or plans to solve economic problems or to interpret markets.
Identify opportunities or develop channels for purchase or sale of securities or commodities.
Devise trading, option, or hedge strategies.
Make bids or offers to buy or sell securities.
Offer advice on the purchase or sale of particular securities.
Explain stock market terms or trading practices to clients.
Compile lists describing product or service offerings.
Inform other traders, managers, or customers of market conditions, including volume, price, competition, or dynamics.
Provide application or analytical support to researchers or traders on issues such as valuations or data.
Agree on buying or selling prices at optimal levels for clients.
LO 11: Develop the concept of options as financial insurance
Explain features, advantages, and disadvantages of various policies to promote sale of insurance plans.
Customize insurance programs to suit individual customers, often covering a variety of risks.
Discuss financial options with clients and keep them informed about transactions.
Investigate available investment opportunities to determine compatibility with client financial plans.
Design, review, and help administer insurance, annuity and pension plans, determining financial soundness and calculating premiums.
Determine policy contract provisions for each type of insurance.
Answer clients' questions about the purposes and details of financial plans and strategies.
Call on policyholders to deliver and explain policy, to analyze insurance program and suggest additions or changes, or to change beneficiaries.
Recommend to clients strategies in cash management, insurance coverage, investment planning, or other areas to help them achieve their financial goals.
Devise trading, option, or hedge strategies.
LO 12: Define important terminology for options markets
Formulate recommendations, policies, or plans to solve economic problems or to interpret markets.
Explain stock market terms or trading practices to clients.
Identify opportunities or develop channels for purchase or sale of securities or commodities.
Devise trading, option, or hedge strategies.
Offer advice on the purchase or sale of particular securities.
Make bids or offers to buy or sell securities.
Agree on buying or selling prices at optimal levels for clients.
Act as an intermediary in negotiations between buyers and sellers, generally representing one or the other.
Represent companies in negotiating contracts and formulating policies with suppliers.
Provide application or analytical support to researchers or traders on issues such as valuations or data.
LO 13: Understand how options can be used as a risk-management tool
Plan security for special and high-risk events.
Collect stakeholder data to evaluate risk and to develop mitigation strategies.
Decline excessive risks.
Design or implement products and services to mitigate risk or facilitate use of technology-based tools and methods.
Perform risk analyses so that appropriate countermeasures can be developed.
Perform risk assessments to develop response strategies.
Assess risks to mitigate potential consequences of incidents and develop a plan to respond to incidents.
Decrease value of policy when risk is substandard and specify applicable endorsements or apply rating to ensure safe, profitable distribution of risks, using reference materials.
Customize insurance programs to suit individual customers, often covering a variety of risks.
Devise trading, option, or hedge strategies.
LO 14: Examine numerous trading strategy that mitigate risk and lower the cost of using options.
Devise trading, option, or hedge strategies.
Decline excessive risks.
Offer advice on the purchase or sale of particular securities.
Discuss financial options with clients and keep them informed about transactions.
Formulate recommendations, policies, or plans to solve economic problems or to interpret markets.
Design or implement products and services to mitigate risk or facilitate use of technology-based tools and methods.
Develop cost reduction strategies and savings plans.
Make bids or offers to buy or sell securities.
Decrease value of policy when risk is substandard and specify applicable endorsements or apply rating to ensure safe, profitable distribution of risks, using reference materials.
Plan security for special and high-risk events.
LO 15: Find the maximum and minimum prices for options
Determine and set product prices.
Determine price schedules and discount rates.
Establish and calculate optimum values for database parameters, using manuals and calculators.
Agree on buying or selling prices at optimal levels for clients.
Calculate premiums and establish payment method.
Analyze price proposals, financial reports, and other data and information to determine reasonable prices.
Negotiate with carriers, warehouse operators, or insurance company representatives for services and preferential rates.
Negotiate prices or terms of sales or service agreements.
Quote prices, credit terms, or other bid specifications.
Discuss fencing needs with customers, and estimate and quote prices.
LO 16: Appreciate the role of strike prices and time to maturity in pricing options
Devise debt liquidation plans that include payoff priorities and timelines.
Draft contract proposals or counter-proposals for collective bargaining or other labor negotiations.
Negotiate bargaining agreements and help interpret labor contracts.
Negotiate labor disputes.
Study legislation, arbitration decisions, and collective bargaining contracts to assess industry trends.
Study legislation, arbitration decisions, and collective bargaining contracts to assess industry trends.
Devise trading, option, or hedge strategies.
Negotiate collective bargaining agreements.
Agree on buying or selling prices at optimal levels for clients.
Analyze price proposals, financial reports, and other data and information to determine reasonable prices.
LO 17: Motivate the importance of an option's insurance value
Explain features, advantages, and disadvantages of various policies to promote sale of insurance plans.
Customize insurance programs to suit individual customers, often covering a variety of risks.
Design, review, and help administer insurance, annuity and pension plans, determining financial soundness and calculating premiums.
Decrease value of policy when risk is substandard and specify applicable endorsements or apply rating to ensure safe, profitable distribution of risks, using reference materials.
Review insurance policy to determine coverage.
Develop marketing strategies to compete with other individuals or companies who sell insurance.
Authorize reinsurance of policy when risk is high.
Call on policyholders to deliver and explain policy, to analyze insurance program and suggest additions or changes, or to change beneficiaries.
Plan security for special and high-risk events.
Review and verify data, such as age, name, address, and principal sum and value of property, on insurance applications and policies.
LO 18: Determine when it is optimal to exercise an option early
Review work plans to schedule activities.
Order the performance of corrective work when problems occur and recommend procedural changes to avoid such problems.
Plan routines, choose appropriate music, and choose different movements for each set of muscles, depending on participants' capabilities and limitations.
Identify and prioritize energy-saving measures.
Study and analyze information about alternative courses of action to determine which plan will offer the best outcomes.
Plan and follow the most efficient routes for delivering goods.
Plan test schedules or strategies in accordance with project scope or delivery dates.
Provide advice on best practices and implementation for selection.
Assign or schedule tasks to meet work priorities and goals.
Test equipment prior to use to ensure that it is in good working order.
LO 19: Apply the concept of put-call parity to European and American Options
LO 20: Introduce a one period binomial option pricing model
Compute payment schedules.
Calculate premiums and establish payment method.
Determine price schedules and discount rates.
Maintain or modify all financial analytic models in use.
Design, review, and help administer insurance, annuity and pension plans, determining financial soundness and calculating premiums.
Direct the distribution of complimentary hotel rooms, meals, or other discounts or free items given to players, based on their length of play and betting totals.
Agree on buying or selling prices at optimal levels for clients.
Open and close cash floats and game tables.
Decline excessive risks.
Discuss financial options with clients and keep them informed about transactions.
LO 21: Expand the binomial option pricing model to multiple time periods
Compute payment schedules.
Maintain or modify all financial analytic models in use.
Calculate premiums and establish payment method.
Distribute and collect timecards each pay period.
Devise debt liquidation plans that include payoff priorities and timelines.
Create models or scenarios to predict the impact of changing circumstances, such as fuel costs, road pricing, energy taxes, or carbon emissions legislation.
Create models or scenarios to predict the impact of changing circumstances, such as fuel costs, road pricing, energy taxes, or carbon emissions legislation.
Determine price schedules and discount rates.
Devise debt liquidation plans that include payoff priorities and timelines.
Estimate time for debt repayment, given amount of debt, interest rates, and available funds.
LO 22: Determine the effect of dividends on binomial option pricing
Calculate premiums and establish payment method.
Design, review, and help administer insurance, annuity and pension plans, determining financial soundness and calculating premiums.
Determine equitable basis for distributing surplus earnings under participating insurance and annuity contracts in mutual companies.
LO 23: Introduce software that can be used to value options using the binomial pricing model
Provide application or analytical support to researchers or traders on issues such as valuations or data.
Generate lists of properties for sale, their locations, descriptions, and available financing options, using computers.
Compute amounts, such as space available, shipping, storage, or demurrage charges, using computer or price list.
Determine and set product prices.
Compute sales prices, total purchases, and receive and process cash or credit payment.
Establish or identify prices of goods, services, or admission, and tabulate bills, using calculators, cash registers, or optical price scanners.
Calculate premiums and establish payment method.
Perform financial calculations, such as amounts due, interest charges, balances, discounts, equity, and principal.
Research or develop analytical tools to address issues such as portfolio construction or optimization, performance measurement, attribution, profit and loss measurement, or pricing models.
Debit, credit, and total accounts on computer spreadsheets and databases, using specialized accounting software.
LO 24: Understand the value of a closed-form continuous time option pricing model
Maintain or modify all financial analytic models in use.
Develop application-specific software.
Compute prices for services and receive payment, or provide supervisors with billing information.
Open and close cash floats and game tables.
Devise trading, option, or hedge strategies.
Develop prospect lists.
Compute figures such as balances, totals, or commissions.
Generate financial ratios, using computer programs, to evaluate customers' financial status.
Determine price schedules and discount rates.
Forecast the value of property.
LO 25: Determine the limitations of the Black-Scholes Model
Maintain or modify all financial analytic models in use.
Design, conduct, and evaluate experimental operational models in cases where models cannot be developed from existing data.
Create models or scenarios to predict the impact of changing circumstances, such as fuel costs, road pricing, energy taxes, or carbon emissions legislation.
LO 26: Adapt the BSOPM for valuing options on indices, currencies, and futures
Maintain or modify all financial analytic models in use.
Update automated test scripts to ensure currency.
Keep accurate records of monetary exchanges, authorization forms, and transaction reconciliations.
Provide application or analytical support to researchers or traders on issues such as valuations or data.
Buy or sell stocks, bonds, commodity futures, foreign currencies, or other securities on behalf of investment dealers.
Exchange paper currency for playing chips or coin money.
Devise trading, option, or hedge strategies.
Discuss financial options with clients and keep them informed about transactions.
Supply the latest price quotes on any security, as well as information on the activities or financial positions of the corporations issuing these securities.
Exchange currency for customers, converting currency into requested combinations of bills and coins.
LO 27: Use the option "Greeks" to determine point-in-time option price sensitivity to the underlying parameters
Establish and calculate optimum values for database parameters, using manuals and calculators.
Determine price schedules and discount rates.
LO 28: Apply option "Greeks" to portfolios of options
LO 29: Introduce and define the concept of a swap
Direct release or transfer of prisoners.
Turn handles or knobs to set pressures and depths of ram strokes and to synchronize machine operations.
Receive, examine, and tag articles to be altered, cleaned, stored, or repaired.
Insert new or repaired tumblers into locks to change combinations.
Position, align, or adjust workpieces or electrical parts to facilitate wiring or assembly.
LO 30: Motivate fixed-for-floating interest rate swaps using the idea of competitive advantage
Open and close cash floats and game tables.
Establish and maintain banks and table limits for each game.
Perform financial calculations, such as amounts due, interest charges, balances, discounts, equity, and principal.
Balance currency, coin, and checks in cash drawers at ends of shifts and calculate daily transactions, using computers, calculators, or adding machines.
Ascertain premium rates required and cash reserves and liabilities necessary to ensure payment of future benefits.
Exchange money, credit, tickets, or casino chips and make change for customers.
Devise trading, option, or hedge strategies.
Perform removal and rotation of cash, coin, or chip inventories as necessary.
Exchange paper currency for playing chips or coin money.
Develop promotions for current programs and specials.