FINA 4372 Financial Derivatives

The purpose for attending this course is to learn the valuation theory and the trading practice of financial derivatives such as forwards, futures, and options. Students learn about derivative security or contingent claim that represents financial instruments, which are contracts whose value depends on the value of another asset such as agricultural commodities, equity stock, equity index, bond, barrel of oil, foreign currencies, etc. Students learn to utilize these instruments as investment tools to tailor the amount and type of risk taken such as risk associated with changes in interest rates, exchange rates, stock prices, commodity prices, inflation, weather, etc. Students are introduced to how financial derivatives are utilized by large institutions and small investors to hedge unwanted risks or to take on additional risk motivated by future market movements.

Credits

3

Prerequisite

Junior standing, ECON 2302 and FINA 3380; or equivalent courses with the consent of the instructor. All students pursuing a Bachelor of Business Administration, Bachelor of Arts in Economics, or Bachelor of Science in Materials Management and Logistics from VCoBE, must apply for and be admitted to VCoBE before they are allowed to enroll in the Advanced Business Core and Major coursework for their degree.

Schedule Type

Lecture

Grading Basis

Standard Letter (A-F)

Administrative Unit

Dept of Finance

Offered

As scheduled