May 26, 2024  
2020-21 Undergraduate Catalog 
2020-21 Undergraduate Catalog [ARCHIVED CATALOG]

BA 384 Derivative Securities and Markets

This course is designed as an introductory class in derivative securities and markets for undergraduate finance students. It covers the concepts, theories, and applications of derivative instruments; it examines the origin, development, and significance of derivative markets in the financial system. Among all derivatives, the focus is on the oldest and most common place of these instruments, namely, options and futures. The issues to be covered include options markets and strategies, the structure of options markets, principles and models of option pricing, forwards and futures, the structure and pricing of futures, futures hedging strategies, and other advanced derivatives. It attempts to strike a balance between institutional details, theoretical foundations, and practical applications.

Prerequisite: A grade of “C” or above in BA 380  and junior standing.