FINA4325 Options and Futures

Course Description

Introduction to options futures and other derivative securities. Topics include option valuation models principles of forward and futures pricing structure of markets for derivative securities and strategies for hedging and speculation.

Course Credits: 3

Prerequisites: FINA 3320.

Student Learning Outcomes

  • Describe the fundamental features of the major types of futures contracts and explain how these contracts are created.
  • Describe the fundamental features of the major types of options contracts and explain how these contracts are created.
  • Describe how prices for futures are determined by trading in the market, given their fundamental value. In particular, explain how arbitrage aligns the price of financial derivatives with their fundamental values.
  • Explain and apply models for valuation of options contracts.
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