Syllabus
Principles, mechanics, and practical aspects of trading with financial derivatives. Forwards, futures, options, and swaps.
Elementary principles of derivatives valuation. Binomial trees and their application to valuation of options.
Itô's lemma and the Black-Scholes formula. Risk management for derivatives trading (Delta, Gamma, Value at Risk etc.).
Annotation
Practical introduction to financial derivatives with minimal assumptions in the area of mathematical calculus, statistics, and probability theory. Principles, mechanics, and practical aspects of trading with financial derivatives.
Forwards, futures, options, and swaps. Elementary principles of derivatives valuation.
Binomial trees and their application to valuation of options. Credit, weather, and other exotic derivatives.