Derivatives of Financial Markets
The course Financial Derivatives deals primarily with fixed and conditional term derivative instruments such as forwards, futures, swaps and options. It explains the ways in which derivatives are used in the financial markets, especially in managing interest and currency risk, enables to understand the nature of financial derivatives, their valuation and the specifics of exchange trading of futures and options.
Teacher(s)
Syllabus
Schedule:
1. Introduction and mechanics of futures markets
2. Hedging strategies using futures
3. Interest rates
4. Determination of forward and futures prices
5. Interest rate futures
6. Swaps
7. Mechanics of option markets and properties of options
8. Trading strategies involving options and binomial trees
9. The Black-Scholes-Merton model
10. Options on stock indices, currencies, and futures
11. The Greeks
12. Additional topics from financial derivatives
