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Fin. Engineering and Derivatives

Course Description

This course provides an introduction to futures and options markets and outlines the different ways in which they can be used. It covers futures and forward contracts, pricing of forward and futures, hedging techniques, swaps, options markets, trading strategies, option pricing models, volatility smiles, and a detailed treatment of hedge parameters such as delta, gamma, and vega. Also discussed is portfolio insurance, value-at-risk measure, multi-step binomial trees to value American options, interest rate options, and other exotic options.

Learning Outcomes

  • Define, discuss, and analyze present futures, forward, and options markets.
  • Compare and contrast the pricing models of futures, forwards, and options.
  • Compare and contrast various ways in which a company can take a position in futures and options contracts to offset an exposure to the price of an asset.
  • Compare and contrast the two most common types of swaps such as interest rate swaps and currency swaps.
  • Analyze six factors affecting the value of a stock option: the current stock price, the strike price, the expiration date, the stock price volatility, the risk-free interest rate, and the dividends expected during the life of the option.
  • Discuss, compare and contrast various trading strategies involving options.
  • Compare and contrast stock options, futures option, and other exotic options, including credit derivatives, weather derivatives, energy derivatives, and insurance derivatives.
  • Discuss derivatives disasters and review the lessons learned from them.

Why Choose National University?

We’re proud to be a veteran-founded, San Diego-based nonprofit. Since 1971, our mission has been to provide accessible, achievable higher education to adult learners. Today, we educate students from across the U.S. and around the globe, with over 150,000 alumni worldwide.

Four-Week Classes

Focus on one subject at a time — one month at a time — and finish your degree faster.

100+ Degree Programs

Choose from associate, bachelor’s, and master’s degrees, plus credentials and certificates.

On Campus or Online

Study when and where it’s convenient for you with evening, weekend, and 100% online classes.

Year-Round Enrollment

Apply or transfer any time. Classes start monthly, and applications are accepted year round.

20+ Campus Locations

Attend class onsite at one of over 20 campus locations across California or in Nevada.

Military Friendly

As a Yellow Ribbon school, we offer tuition discounts to servicemembers and dependents.

School of Business and Management

“Our business and management programs equip students with the knowledge and tools needed to lead their organizations and stay competitive in the job marketplace.”
School of Business and Management
Asya W.
Class of 2009