Derivatives Securities Part I

Catalog description

The purpose of this course is to the study of the basic derivative securities: forwards, futures, call options, and put options. Studied are the derivative securities themselves and how to use them in practice to price and hedge market risks. At the end of the course, the simplest option pricing model, the single period binomial model, is studied to provide the logic and intuition underlying the option pricing models used in practice. The models used in practice are studied in NBA-6740 (Derivative Securities II). This course is quantitative in nature, and it requires the use of algebra and simple probability theory.