Credits: 3 (3-0-0)
Prerequisites: MSL708 for MBA, MSL302 for B.Tech Students
Description
This course covers how derivative markets function, how various derivative securities are priced, their usage and the associated risks with each. Specifically, this course focuses on forwards and futures, and options on stocks, stock indices, currencies, and futures options. It covers binomial model and Black Scholes-Merton model for option pricing, moves on to trading strategies using options, and finally Greek letters and volatility smiles. It briefly covers energy and commodity derivatives in the applications.