The aim of this course is to provide the student with a strong foundation on derivatives, providing the tools to use these instruments in arbitrage, hedging and speculation operations. At the end of the course students should be able to: understand the functioning of derivatives markets; understand the use of derivatives in operations of arbitrage, hedging and speculation; and apply the models used to value derivatives.
The topics covered in the course include: derivatives markets; forwards; futures; options; and swaps.
The teaching methodology relies on 50% of theoretical lectures and 50% of tutorials. During the theoretical lectures the topics are presented by the professor and discussed with the students individually or in group. In the tutorials the students discuss several exercises pre-assigned by the professor.
Hull, J., Options, Futures and Other Derivatives, 8th Edition, International Edition, 2011.
Benninga, S., Principles of Finance with Excel, 2nd edition, Oxford University Press, 2010.
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