Before enrolling in this course, students should have:
A basic understanding of finance and economics, including concepts such as interest rates, inflation, and the time value of money.
Familiarity with the basic principles of investment and financial markets.
Some background in mathematical concepts, particularly statistics and probability, as they are often used in the pricing and analysis of financial instruments.
A basic understanding of risk and risk management strategies in the financial context.
The course aims to:
Provide a comprehensive understanding of the structure and function of various financial markets, with a focus on exchange-traded markets, over-the-counter markets, and the roles of various market actors.
Equip students with the knowledge to understand, analyze, and use futures, forward markets, options, and swaps, including strategies for both hedging and speculation.
Develop an understanding of the regulatory environments for these financial instruments.
Enable students to analyze the effect of market events such as dividends and stock splits on option trading.
I. Organization of Financial Markets
- Specification of Exchange-Traded Markets
- Specification of Other the Counter Markets
- Actors in Market
- Hedging
- Arbitrage
- Speculation
II. Futures & Forward Markets and their Use
- Specification of Futures Contracts/Forward Markets
- Regulation of Futures/Forward Markets
- Long & Short Hedges
- Rolling The Hedge Forward
III. Options Markets
- Organization of Trading
- Assets Underlying Exchange-Traded Options
- Specification of Exchange-Traded Options
- Dividends & Stock Splits
IV. Trading Strategies by options
- Non Speculative (Hedging) Strategies
- Speculative Strategies
V. Swaps
- Interest Rates Swaps
- Cross Currency Swaps
- Credit Default Swaps
- Structural Swaps
