This course provides knowledge about derivative securities and the derivative market. The course introduces concepts and properties of typical derivatives in the market. At the same time, students will be equipped with principles and methods of pricing popular derivatives such as options, forwards, futures and swaps.
The most important role of using derivatives is to hedge risk. Therefore, in this course, topics about the application of derivatives for hedging risk will also be discussed. This course will equip students with derivatives valuation models and knowledge of hedging strategies using derivatives in different scenarios.