Derivatives - BAF 450

This course introduces the basic characteristics of options and their markets. The fundamental principles of pricing options are covered. The simple binominal model and the Black-Scholes models for pricing options are explored with direct implementation through real case problem-solving. The course also develops the basic option trading strategies. Finally, the principals for pricing forwards, futures, and options on futures contracts are developed and detailed together with a set of problem solving. Prerequisite: BAF 321.