Site Navigation
BAFN303 Derivates Investment
10 cp
Prerequisites BAFN204 Portfolio Management
Teaching Organisation 3 hours per week for twelve weeks or equivalent.
This unit is a detailed study in derivative investment instruments. It considers the need for and mechanics of derivatives markets, in particular those involving futures, options and swap transactions. Terminology used in the market is discussed and examined including concepts such as basis risk, hedge ratios and volatility smiles. Various hedging strategies and valuation models are considered.
