Course overview
This course introduces students to the derivative markets, examining how hedgers, speculators, and arbitrageurs use financial futures, forwards, and options. The course considers the pricing of derivatives and the use of binomial trees to demonstrate no-arbitrage and risk-neutral valuation arguments, as well as the Black-Scholes-Merton approach. There is an emphasis on the use of options and futures strategies for hedging and risk management to achieve interesting payoff patterns.
Course learning outcomes
- Develop appropriate option strategies to hedge or arbitrage from mispriced derivative securities
- Price forward and futures contracts using the Cost-of-Carry model
- Determine appropriate hedging and risk management strategies using a mix of underlying and derivative securities
- Price options using the Binomial and Black Scholes pricing models
Availability
Class details
Adelaide City Campus West
Class number 23173
Section SE01
Size 50
Available 50
Class number 23172
Section SE04
Size 50
Available 50
Class details
Adelaide City Campus West
Class number 50606
Section SE01
Size 50
Available 50
Class number 50605
Section SE02
Size 50
Available 50
Class number 50604
Section SE03
Size 50
Available 50
Class number 50603
Section SE04
Size 50
Available 50
Class number 50602
Section SE06
Size 50
Available 50
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