Section outline

  • Course Overview !

    In this course you will learn about financial derivatives, including options, futures, forwards, swaps, and other securities as time permits. Our primary emphasis will be on how these contracts are valued and how they can be used to manage risk by hedging.

    Prerequisites 

     All students should have successfully completed FINC 5031 (Financial Analysis and Markets) or an equivalent course. I will also assume that you are familiar with basic algebra and statistical techniques and that you are able to use Microsoft Excel. Anyone who has not completed the required prerequisites should speak with me before continuing in the course.

    Learning Outcomes 

    - Upon successful completion of this course, students will be able to…

    - Define each of the basic derivative contracts, including forwards, futures, swaps, and options;

    - State how the payoff for each type of derivative is determined;

    - Give examples of how derivatives can be used for hedging and for speculation; and

    - Price each type of derivative given the terms of the contract and the characteristics of the underlying asset.


    👇 Open the syllabus dpf file below !