Mar 28, 2024  
2021-2022 Graziadio Academic Catalog 
    
2021-2022 Graziadio Academic Catalog [ARCHIVED CATALOG]

FINC 640 Derivative Contracts (2)


FINC 640 is an introductory course on derivatives. The course is an upper-level elective and assumes previous exposure to derivatives gained from required and elective finance courses. The course introduces the student to the design and structure of basic financial derivatives contracts. Contracts covered include Forwards, Futures, Options, and Swaps. The first half of the course is devoted to understanding contract nomenclature and the theoretical and practical concepts of valuation. Topics include pay-off diagrams, valuation methodology and market price behavior. The latter part of the course is devoted to extending the basic structures and examining how the contracts have been adopted for use with currencies, interest rates, equity and fixed income securities. Contemporary examples of the application of derivative contracts and the economic costs and benefits are covered. Prerequisite(s): Fully Employed–FINC 655 Financial Management of the Firm .