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

Derivative Security Markets

---

Prerequisite

FINA 4310

---

Semester Course Offered

Offered every year.

---

Grading System

A - F (Traditional)

---

Student learning Outcomes

• Students will understand the basics of Financial Derivative products and understand the markets in which they trade.
• Students will learn to value and price derivative products.
• Students will understand how to apply derivatives in hedging situations within various different financial markets.
• Students will understand stock options and be able to program option pricing models in Excel.
• Students will understand credit risk and how to use credit derivatives to mitigate that risk.

---

Topical Outline

• Structure of Options Markets
• Principles of Option Pricing
• The Binomial Option Pricing Model
• The Black-Scholes Option Pricing Model
• Option Strategies
• Structure of Forward and Futures Markets
• Principles of Forward and Futures Pricing
• Financial Risk Management

---

Institutional Competencies Learning Outcomes

Analytical Thinking

The ability to reason, interpret, analyze, and solve problems from a wide array of authentic contexts.

---

Syllabus

Select Faculty / Instructor to download syllabus:   Blasko, Matej   Dong, Hang   Kohler, Johannes (13147, 29713, 13334, 29714) TR   Kohler, Johannes (13334, 29714) TR   Kohler, Johannes (13147, 29713) TR   Tran, Hieu   Wardlaw, Malcolm (56682, 70759,70757, 70758) TR   Wood, Katherine

---

Public CV

Select a file to download:   Wardlaw_Public_Teaching_CV.pdf

---