FINA 20210A

Introduction to the evaluation and use of options and futures. The focus is on the institutional aspects associated with these instruments and on learning the underlying principles involved in the use and pricing of these contracts.

The following topics will be covered: Introduction to derivatives markets; Forward and Futures market operations; Hedging strategies using futures; Determining forward prices; Futures on interest rates; Interest rate swaps; Options market operations; Options price determination and uses; Use of option contracts to determine hedging strategies.