SIM 412: Financial Derivatives

Learning Outcomes

Upon completion of this course the Student should be able to:

1. display knowledge capacity on financial markets and instruments;
2. perform the complex techniques applicable to solve problems in Derivative Securities in the professional practice;
3. Keep abreast of current issues in derivative securities; concepts and principles of derivative securities in various contexts;
4. demonstrate skills in solving problems in Derivative Securities by various appropriate mathematical and statistical techniques; and
5. Perform practical skills in the application of the concepts and theories in Derivative Securities domain.

Course Contents

Financial markets and instruments. Derivatives markets (fixed income derivatives etc.). Interest rate option, equity derivatives. Futures markets, related markets (swaps), analysis of derivatives and other products (futures, options). Arbitrage problems. Hedging strategies. Theoretical price of futures. Basis and factors causing change. Determinations of option price. Options pricing models. Volatility and related topics. Options strategies. Sensitivity analysis of options premiums. Asset-backed securities and floating rate notes.