Derivatives

Aims of the course

Knowledge of basic derivative products, their use in real life, understadning basic models of pricing

Course syllabus

1. Functioning of the Financial Markets and their Volatility
1.1. Theoretical and Practical Obstacles for the Functioning of the Financial Markets
1.2. Volatility and How to Measure it
2. Risks
2.1. Definition
2.2. How to Hedge against the Risks
3. Underlying and Derivative Financial Instruments
3.1. Definition of Underlying Financial Instruments
3.2. Definition of Derivative Financial Instruments
3.3. Classification of Underlying and Derivative Financial Instruments
4. Options as the Basis of the Derivatives
4.1. Definition
4.2. Evaluation
5. Option"s Evaluations
5.1. Methods with no evaluation
5.2. Graphical methods
5.3. Rules and Formulas
5.4. Probability models
5.5. Black-Scholes model
5.6. Improved Black-Scholes models
6. Other derivatives and their Evaluation
6.1. Forward and futures contracts
6.2. Warrants
6.3. Different debt derivatives
6.4. Others
7. Derivatives" Strategies
7.1. Basic-simple
7.2. Advanced-complex (Synthetics)
8. How to use derivatives in real life

Course director(s)