Financial Derivatives and Alternative Investments
Time:2013-10-22 11:12:13 Clicks:
Course Title: Financial Derivatives and Alternative Investments
Course Code:
Teaching Hours: 3 x 16 = 48
Course Overview
This subject focuses on the application and valuation of derivative securities, such as forwards, futures, swaps and options. The emphasis will be on arbitrage relations, valuation, and hedging with derivatives. The topics covered include; Forwards and futures: the mechanics of trading, price determination, hedging strategies; Swaps: definition and valuation; Options: payoffs, arbitrage bounds, trading strategies, the binomial model, the Black-Scholes model and its relationship to the binomial, hedging, American options and dividends, options on futures, limitations of the binomial and Black-Scholes Models.