Derivatives and Specialized Products

Faculty
Commerce & Business Administration
Department
Finance
Course Code
FINC 4450
Credits
3.00
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Method Of Instruction
Lecture
Seminar
Typically Offered
To be determined

Overview

Course Description
Derivatives and specialized products is a course which will examine topics dealing with derivative securities. Derivative securities are often utilized in the management of interest rate, exchange rate, commodity and equity price risks. Derivative securities also provide a vehicle for investors to speculate. The types of derivative securities, their use in modern finance, and methods for pricing them will be the subject matter for this course.
Course Content
  1. Discussion of risk
  2. Mechanics and pricing of forwards and futures
  3. Interest rate futures
  4. Swaps
  5. Options markets
  6. Properties of stock options
  7. Trading strategies involving options
  8. Option pricing: the binomial model
  9. Option pricing: the Black-Scholes model
  10. Options on stock indices, currencies, and futures
Methods Of Instruction

Material will be presented within a lecture format.

Means of Assessment

 

Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.

Learning Outcomes

At the end of the course, the successful student should be able to:

 

  1. analyze and understand the meaning of risk;
  2. utilize derivative securities for the purpose of managing risk;
  3. determine the value of different derivative securities;
  4. analyze the mechanics of futures and options trading.
Textbook Materials

Textbooks and Materials to be Purchased by Students

 

  • Hull, J.  Fundamentals of Futures and Options Markets, Latest Ed. Toronto: Prentice Hall Canada.  (required)

 

  • Ritchken, P.   Derivative Markets: Theory, Strategy, and Applications, Latest Ed.  HarperCollins Publishers Ltd.  (optional)

Requisites

Prerequisites

Corequisites

Equivalencies

No equivalent courses.

Requisite for

This course is not required for any other course.

Course Guidelines

Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester / year of the course, consider the previous version as the applicable version.

Course Transfers

Institution Transfer Details Effective Dates
Langara College (LANG) LANG BUSM 2XXX (3) 2009/01/01 to -

Course Offerings

Fall 2020

There aren't any scheduled upcoming offerings for this course.