FIN 430 - Derivatives Markets

Units: 3
Financial derivative markets. Topics include futures and forward markets, valuation, and strategies; option markets, valuation, and strategies; risk management and hedging; swaps and financial engineering.

Prerequisites: FIN 300.
Equivalent Quarter Course: FIN 4315.
Possible Instructional Methods: Entirely On-ground, or Entirely Online.
Grading: A-F grading only.
Course Typically Offered: Fall ONLY

Student Learning Outcomes - Upon successful completion of this course students will be able to:

Define derivatives and explain the characteristics of derivatives markets.
Define forward contracts, describe the pricing and valuation of forward contracts, and explain the characteristics of forward markets.
Define futures contracts, describe the pricing and valuation of futures contracts, and explain the characteristics of futures markets.
Define call and put options and explain the characteristics of options markets.
Calculate the option price by using the Binomial model and the Black-Scholes-Merton model.
Explain the trading, hedging, and risk management applications of forward, futures, and options.
Describe the characteristics of other derivatives such as swaps.
Explain the valuation and risk management applications of swap contracts.