FINA 7350 Derivatives
Development of an understanding of financial derivative instruments (forwards, futures, options, and swaps) and their applications to investment strategy and risk management. Throughout the course, we cover material in the contracts, hedging, arbitrage, pricing, and risk management of financial derivative instruments. Derivatives pricing models such as Binomial Tree Model and BSM Model are discussed in detail. Students learn how to apply futures strategies for long and short hedge, and how to apply option strategies such as covered calls, spreads and butterflies and options Greeks for financial engineering and risk management purpose. Students use options and futures contracts for tactical portfolio strategies purpose. Relevant topics such as securitization and real options are also covered in the class.