361 مال: المشتقات المالية FIN 361: Financial Derivatives

This course presents and analyzes a distinct type of financial securities called derivatives. The global derivatives market is the most rapidly growing market, as the notional global market value of derivatives in December 2016 was USD $483 trillion. Hence, it is important to understand both the strategic opportunities offered by these derivative instruments and the risks they imply.
After a brief introduction to derivatives, the first section of this course examines a broad range of derivative products and markets, and discusses how risks are managed by users of derivatives. The fundamental principle underlying this material – pricing by no-arbitrage. The second section of the course will explore forward and futures contracts including pricing and applications such as hedging with forwards and futures. The third section of this course will study swap markets and their risk applications. Section 4 presents derivative securities with option-like payoffs with an emphasis on no-arbitrage pricing restrictions, and describes how they are used to hedge different kinds of risk. Section 5 analyzes option pricing in a mathematical approach, and presents well-known models in options valuation such as the binomial tree model and the Black-Scholes-Merton option pricing model. This section also discusses hedging with options, and applications of option pricing. Section 6 discusses options strategies used to manage corporate risk.  The final section of the course focus on real-life applications of option pricing.