Academic Calendar 2023/2024 - Fundamentals of Financial Derivatives

FINC 4116  Fundamentals of Financial Derivatives

Prerequisites:

FINC 3316 and FINC 3117

Antirequisites:

ADMN 4116

Hours:

Two hours of lecture and one hour of seminar per week for one term

Hours:

Three hours of lecture and one hour of seminar per week for one term.

Credits:

3

Description:

This course focuses on derivative securities and their applications as risk management and yield enhancement tools for corporations, as well as strategies for using them for arbitrage, hedging, portfolio insurance, and speculation. The analysis will cover standard derivative instruments (futures, forwards, FRA's, swaps, stock options) as well as more recent ones such as exotic options and credit derivatives. The course emphasizes the pricing or valuation of derivatives, as well as the application of derivatives. Valuations are explored through the cost-of-carry model, risk neutral valuations, binomial trees, and the Black-Scholes model.