FIN 427 - Options and Derivatives

3 Credit(s)

This course teaches students how to understand and value the wide variety of financial derivatives products available. The course examines the properties of options and other derivatives, theoretical frameworks within which all derivatives can be valued and hedged, such as binomial approach and the practical applications of real-world financial derivatives. Topics include basic futures and forwards, hedging with futures and forwards, interest-rate forwards and futures, options, trading strategies involving options, swaps, and valuation using a binomial model and the Black-Scholes model.

Prerequisite(s): FIN 303 and MATH 119