FIN 630 - Seminar in Options and Futures

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 605.
Equivalent Quarter Course: FIN 6315.
Possible Instructional Methods: Entirely On-ground or Hybrid.
Grading: A-F grading only.
Student Learning Outcomes - Upon successful completion of this course students will be able to:

Define derivatives and explain the characteristics of derivatives markets, the pricing of derivatives using no-arbitrage, and uses of derivatives.
Define forward contracts, describe the pricing and valuation of forward contracts, and explain the characteristics and institutional features of forward markets.
Define future contracts, describe the pricing and valuation of futures contracts, and explain the characteristics and institutional features of futures markets.
Define call and put options and explain the characteristics and institutional features 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.
Integrate derivatives with applications of financial innovation, financial engineering, trading strategies, and decision making.