Objectives

The purpose of this course is to extend the student's knowledge of security valuation and portfolio management by examining, in depth, the structure, valuation and uses of derivative contracts. The course develops a general, but rigorous, framework for valuing futures and options contracts and shows the interrelations between these contract markets and the markets for the underlying securities. Specific examples are drawn from derivative contract markets on stocks, stock indexes, debt instruments, and foreign currencies.

Selected Topics

-Introduction to derivatives 
-Functioning of  derivative markets
-Structure of futures prices
-Hedging with futures contracts
-Stock index futures
-Interest rate/currency futures and swaps
-Structure of option prices
-Valuation of options
-Option trading strategies
-Common stock options and warrants
-Stock index options
-Interest rate/currency options 

Hans R. Stoll and Robert E. Whaley, Futures and Options: Theory and Applications, (South-Western Publishing Co.), The Wall Street Journal.

Click here for Finance Home Page