This class exists in these courses :
• Faculté de Gestion, Economie & Sciences - Masters - Master 1 Finance Responsable et Durable - S2 - 4 ECTS

Prerequisites

Students should have successfully completed Financial Analysis or an equivalent course. I will also assume that they are familiar with basic algebra and statistical techniques and that they are able to use Microsoft Excel. Also basic probability, basic calculus, some knowledge of equity markets, and knowledge of fixed income basics are needed.

Learning outcomes

In this course students will learn about financial derivatives, including options, futures, forwards, swaps, and other securities as time permits. Our primary emphasis will be on how these contracts are valued and how they can be used to manage risk by hedging.

Course description

Chapter 1. Introduction

Chapter 2. Mechanics of futures markets

Chapter 3. Determination of forward and futures prices

Chapter 4. Swaps

Chapter 5. Mechanics of options markets

Chapter 6. Properties of stock options

Chapter 7. Binomial trees

Chapter 8. Black-Scholes Model

Chapter 9. The Greeks

Class type

Class structure

Lecture

Assessment: final exam

Teaching methods

Assessment

Recommended reading

• Hull, John C. (2012): Options, Futures, and other Derivatives. 8th Edition or most recent edition .Prentice Hall (or most recent edition). 
  McDonald, Robert L., 2013, Derivatives Markets, 3rd edition, Pearson Higher Education, Inc.

Internet resources

• Cbegroup.com