The objective of this course is to introduce students to the world of derivatives (futures, forwards, options, swaps, etc.). Students will gain an understanding of the derivative products, their valuations, main strategies and practical applications. This course will also cover the basics of hedging and risk management fundamentals.

 

Upon completion of this course, the successful student should able to:

·         Understand the basics of risk and return relationship

·         Understand main types of derivative instruments

·         Compute values of forwards, futures, and swaps

·         Understand main option strategies, and their usage

·         Compute a value of an option using Binomial Option Pricing model

·         Compute a value of an option using Black-Scholes Pricing model

·         Build and manage a simple hedge fund