Financial Derivatives/Financial Markets

The objective of this course is to make students efficient in the area of Financial Derivatives, giving them the knowledge of basics in Financial Derivatives, Futures Markets, Option Strategies, etc.

1. Introduction to Derivatives: Development and Growth of Derivative Markets,Types of Derivatives, Uses of Derivatives, Financial and Derivative markets –Fundamental linkages between spot & Derivative Markets, The Role of Derivatives Market, Uses & Misuses of derivatives.

2. Futures and Forward Market: Structure of forward and Future Markets,Mechanics of future markets, Hedging Strategies, Using futures. Determination of Forward and futures prices – Interest rate futures, Currency futures and Forwards

3. Options: Distinguish between Options and Futures, Structure of Options Market,Principles of Option Pricing, Option Pricing Models: The Binomial Model, The Black – Scholars Merton Model.

4. Basic Option Strategies: Advanced Option Strategies, Trading with Options,Hedging with Options, Currency Options.

5. Swaps: Concept and Nature, Evolution of Swap Market, Features of Swaps, Major Types of Swaps – Interest Rate Swaps, Currency Swaps, Commodity Swaps, Equity Index Swaps, Credit Risk in Swaps, using Swaps to Manage Risk, Pricing and Valuing Swaps.

6. Simulations: Practical lessons by simulations/practices – live trading to learn to trade.

 

CAREERS

  • Self trader
  • Stock Market Broker
  • Financial Market Strategist