Financial Derivatives-FIN 551

This course examines derivatives, a unique and powerful class of financial securities. The global derivatives market is the largest in the world by notional value, making it crucial for modern finance professionals to understand both the strategic opportunities and the inherent risks of these instruments. Locally, the Saudi Exchange (Tadawul) has rapidly evolved with the introduction of MT30 Index Futures and Single Stock Options, signaling their growing role in the Kingdom’s Vision 2030 financial sector development. Designed with an "application-first" mindset, this course moves beyond basic definitions to focus on quantitative valuation and risk management. Students will master the mechanics, pricing, and strategic application of forwards, futures, swaps, and options. The curriculum integrates advanced topics found in top-tier global programs, including the "Greeks" (dynamic hedging), Volatility Surfaces, Value at Risk (VaR), and Credit Derivatives. The course culminates in a real-time trading simulation and case analyses, preparing students to manage risk and craft sophisticated financial strategies in a professional setting.