Course Description
The markets for futures, options, and other derivative securities. The mechanics of trading, regulation, pricing, hedging, and risk management using derivatives.
Additional Requirements for Graduate Students:
Graduate students will write a research paper on a current issue
or recent events relevant to the application, pricing,
accounting, or economic benefits of financial derivatives. In
connection with this research, graduate students will be expected
to read extensively on the topic and to consult with the
instructor as they construct their reading list. Graduate
students should also expect to make a presentation to the class
that relates what they learned in their research paper. Finally,
graduate students will also be required to complete the two
course projects individually, rather than the group work assigned
in this course. Currently, the first of these projects is a
detailed case analysis of a firm's application of derivatives.
The second of the projects is a derivatives trading game that
uses actual market products and prices.
Athena Title
DERV SECURITY MKTS
Prerequisite
FINA 4310
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Course Objectives
This course is an introduction to derivative security markets including the valuation of derivatives, derivative trading strategies, and the management of corporate risk with derivatives.
Topical Outline
Structure of Options Markets Principles of Option Pricing The Binomial Option Pricing Model The Black-Sholes Option Pricing Model Option Strategies Structure of Foward and Futures Markets Principles of Foward and Futures Pricing Financial Risk Management
Syllabus