Futures and Options
Code
2257
Teacher in charge
João Amaro de Matos
Teaching language
Objectives
This course is intended to be an introduction to derivatives, focusing on their economic content and little mathematics. We introduce the basics derivatives instruments namely futures, forwards, swaps and options.
The course is also about financial markets in the sense that explores the uses of such instruments, their pricing principles and trading mechanisms. In order to follow this course, students are supposed to have been through a basic course of Corporate Finance or Financial Management, being familiar with concepts such as discounted cash‐flow and the trade‐off between risk and return.
Prerequisites
Subject matter
Bibliography
Teaching method
-Lectures in class (twice a week);
-Weekly quizzes on Moodle in order to revise regularly the material;
-Students must follow the Khan Academy topics in order to prepare for classes;
-An intermediate case study to be prepared and presented in group;
-Final exam;
Evaluation method
1- Case study: 15%
2- Participation: 15%
3- Quizzes: 20%
4- Final Exam: 50%