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Course Description
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Course Name
Derivative Products
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Host University
The American College of Greece
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Location
Athens, Greece
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Area of Study
Finance
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Language Level
Taught In English
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Prerequisites
FN 2028 Financial Mathematics or FN 3005 Foundations of Corporate Finance
FN 3032 Foundations of Investment
FN 3113 Corporate Finance -
Course Level Recommendations
Upper
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
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US Credits
3 -
Recommended U.S. Semester Credits3
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Recommended U.S. Quarter Units4
Hours & Credits
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Overview
DESCRIPTION:
This course discusses and evaluate the role of derivative securities in managing risk, as well as the general principles underlying the pricing and valuation of derivative securitiesRATIONALE:
In recent years there has been a significant growth of markets for futures contracts and options. Employing these instruments, firms and portfolio managers hedge risk and/or alter the distribution of the returns on their portfolios thus benefiting investors.LEARNING OUTCOMES:
As a result of taking this module, the student should be able to:
1. Discuss the main characteristics of derivatives products and assess the limitations of derivative markets.
2. Explain the role of arbitrage and construct simple derivative securities’ strategies to hedge various risks and reflect on the need for their use in hedging risk.
3. Demonstrate knowledge of pricing of derivatives products, and interpret the emerging payoffs.
4. Valuation of alternative derivative products through applying the appropriate theory.METHOD OF TEACHING AND LEARNING:
In congruence with the teaching and learning strategy of the college, the following tools are used:
- Class lectures and seminar-style class discussion of key terms and concepts with appropriate examples. Use of case studies.
- Office hours: students are encouraged to make full use of the office hours of their instructor, where they can ask questions, see their exam paper, and/or go over lecture material.
- Use of Blackboard
- Guest lectures
- Field visits (students engagement/project involvement)