This course offers a systematic introduction to derivatives, covering fundamental principles and various applications such as speculation, hedging, and arbitrage.
Participants will learn about the mechanisms of derivative markets, including key concepts like margin, leverage, liquidity, and open interest.
The distinctions and nuances of exchange-traded and OTC derivatives will be covered, along with the crucial role of clearing houses.
Advanced topics include detailed approaches to pricing derivatives, with a focus on models like cost of carry, expectation theory, binomial tree, and Black-Scholes.
The course integrates risk management aspects, teaching students effective hedging and portfolio insurance strategies, reinforced with practical case studies for real-world application.
I. Understanding Derivatives
ΙΙ. Derivative Markets and Trading Mechanisms
1. Derivative Markets
2. Trading Mechanisms
ΙΙΙ. Pricing of Derivatives
1. Forward and Futures Pricing
2. Option Pricing
IV. Risk Management using Derivatives
1. Hedging Strategies
2. Portfolio Insurance