Program | PGE |
---|---|
Module / ECTS / Path / Specialisation | Module :Derivatives : 5 ECTS. |
Discipline | Finance |
Year | 2019 |
Semester | B |
Open for visitors | yes (5 ECTS) |
Available places | 40 |
Working language : | English |
Volume of contact hours : | 27 h |
Workload to be expected by the student : | 108 h |
Track : Attendance
This course gives a presentation of derivatives (mainly options in this course) which are actively traded on many exchanges around the world.
Along with market trading mechanics, students will learn trading strategies and use of derivatives. Some basics of evaluation are also presented (arbitrage opportunities and price determinants).
- Define derivatives
- Recognize arbitrage opportunities
- Outline regulations of derivative markets
- Give example(s) of derivatives use
- Describe market mechanics
- Employ and exploit trading stratgies on equity options
- Distinguish trading strategies according to their objective (speculation, hedging...) with derivatives
- Construct strategies based on the call-put parity
1. Introduction
The nature of derivatives
Terminology
Use of derivatives examples
Weather, energy and insurance derivatives
2. Mechanics of options markets
Options positions and payoffs
Commissions, margins
Trading, regulations
Underlying assets
3. Properties of stock options
Types
Price determinants
Parity call-put
Early exercise
Impact of dividends
4. Trading strategies involving options
Spreads (bull-bear-box-butterfly-calendar)
Straddle-Strangle-Strip-Strap
Basic finance and risk
Options, Futures, and Other Derivatives 10th Edition, Copyright © John C. Hull 2017
Such behaviors as...
... may lead to expulsion from classes.