Derivatives and Specialized Products
- Discussion of risk
- Mechanics and pricing of forwards and futures
- Interest rate futures
- Options markets
- Properties of stock options
- Trading strategies involving options
- Option pricing: the binomial model
- Option pricing: the Black-Scholes model
- Options on stock indices, currencies, and futures
Material will be presented within a lecture format.
Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.
Students may conduct research as part of their coursework in this class. Instructors for the course are responsible for ensuring that student research projects comply with College policies on ethical conduct for research involving humans, which can require obtaining Informed Consent from participants and getting the approval of the Douglas College Research Ethics Board prior to conducting the research.
At the end of the course, the successful student should be able to:
- analyze and understand the meaning of risk;
- utilize derivative securities for the purpose of managing risk;
- determine the value of different derivative securities;
- analyze the mechanics of futures and options trading.
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)
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.
These are for current course guidelines only. For a full list of archived courses please see https://www.bctransferguide.ca
|Institution||Transfer Details for FINC 4450|
|Langara College (LANG)||LANG BUSM 2XXX (3)|