Financial Engineering Derivatives Trading Laboratory

Catalog description

This course explores the practical aspects of risk managing and hedging a derivative book. The target audience consists of students pursuing careers in capital markets trading, investment management and quantitative research. Building upon financial concepts, students experiment with derivative strategies in a trading lab environment, observing the impact of transaction costs and liquidity. Emphasis is placed on an intuitive understanding of derivative behavior under multiple market scenarios. Students are instructed to operate within specified risk limits. This adds a practitioner's perspective on the dynamics of risk in a moving market. Note: This requires use of RIT Market Simulator software. | Prerequisites: FRE-GY 6073 and FRE-GY 6083