This advanced finance subject explores the concept of derivatives and their associated pricing, hedging and trading strategies. This includes the rationale underlying derivative market structures and mechanics and the application and pricing of derivative products.
|Faculty||Bond Business School|
|Study abroad||Available to Study Abroad students|
1. Demonstrate knowledge of the contractual features and properties of forwards, futures, options and credit derivatives on a range of underlying assets and commodities.
2. Apply appropriate models to price forwards, futures, options and credit derivatives and demonstrate an understanding of the mathematical derivations and economic rationale underlying the models.
3. Demonstrate the ability to use option trading strategies.
4. Demonstrate the ability to apply and explain pricing models used for risk.
5. Develop a computational model for calculating measures of asset variance for a real-world derivative application.
6. Write an effective written report to communicate the potential usefulness and impact of chosen computational derivative model.
Students must have successfully completed FINC13-303 Portfolio Analysis and Investment Markets and FINC12-200 Fundamentals of Finance or equivalent prior to undertaking FINC13-305