This course presents and analyzes derivatives, such as forwards, futures, swaps, and options. It compares major types of derivatives, shows how they are used to achieve various hedging and speculating objectives, introduces a framework for pricing derivatives, and studies several applications of derivative-pricing techniques outside derivative markets. Topics also include traditional and exotic derivatives, market risk, credit issuer risk, stressed correlation materials, fat tails, and case studies in corporate finance.
- Assess the risk associated with different derivatives.
- Analyze short-sale and its applications.
- Compare and contrast the forward contract, the future contracts, put and call options.
- Design new a instrument using other financial instruments.
- Evaluate different strategies that permit speculating on direction of the stock or size of stock price moves (volatility).
- Compare and contrast the differences different hedging techniques.
- Appraise the option price.
- Use Application Builder and from which build your own applications.
- Assess the differences between a Markov and a non-Markov model of short rate.
- Compare and contrast the three dividend models.
- Use the Health-Jarrow-Morton model to price options on Treasury bills, Treasury bonds, Treasury bill futures and Treasury bond futures.
- Evaluate non-standard or exotic options on foreign currencies.
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.
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.
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.
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