FIN824 Derivatives

[3–0, 3 cr.]

This course discusses the framework for understanding and pricing plain vanilla derivatives and their application to financial risk management. It covers the following topics: (1) Basic Properties of derivative securities; (2) Mechanics of Futures and Options Markets; (3) Speculating and Hedging strategies using derivative securities; (4) Pricing Forwards and Futures; (5) Stock Option properties; (6) Binomial Trees; (7) Black and Scholes Option Pricing Model; and (8) Greeks and Hedging.