Fundamentals of Financial Derivatives

Catalog description

In this course, students develop an in-depth knowledge of the major types of financial derivatives: forwards, futures, options, and swaps. Students examine basic as well as more advanced trading strategies and study key institutional aspects of the derivative markets. This background provides students with a sound foundation for analyzing the uses of derivatives in risk management, arbitrage, and speculation. Students focus in detail on how firms manage interest rate and commodity price risks using these derivatives. Among others, topics include no-arbitrage-based pricing and hedging with futures and forwards, the binomial optionpricing model and the classic pricing model of Black-Scholes-Merton Special attention is paid to the implications of the Black-