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.