Course Description
Introduction to derivative security markets, including call and put options, futures and forward contracts, and swaps. Topics include the economic role of derivatives, valuation of derivatives, derivative trading strategies, and managing risk with derivatives. The course will also focus more on examples and applications in financial derivatives and financial engineering.
Athena Title
FINA DERIVATIVES
Prerequisite
FINA 7010 or FINA 7020
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Course Objectives
The purpose of this course is to provide an introduction to derivative securities, the arbitrage relationships associated with them, and the modeling tools most widely used for calculating their prices and related hedging parameters, with an emphasis on futures, stock options, and index options. Theory and application to risk management with financial derivatives will also be covered.
Topical Outline
Financial Modeling / Excel skills Options, Forwards, Futures Hedging Financial Engineering Swaps Structural Equity Term Structure VAR Real Options Risk Management International (currency options, futures, forwards and swaps; exchange rate markets)