Undergraduate Courses

ECON4450 ECONOMICS OF DERIVATIVES

This course is designed as an introduction to the markets for derivatives. It covers most of the widely used derivative securities in practice, such as futures contracts, interest-rate and currency swaps, and various options. During the course we shall discuss, among others, the uses of derivatives in risk management, valuation of derivatives, the risk-neutral valuation principle, the Black-Scholes formula, binomial trees approach and portfolio insurance. Though not a prerequisite, a minimum background in corporate finance and/or financial markets will be desirable. Students are advised to take ECON2011 and 2021 before taking this course.

2016-2017:
1st Term
2nd Term
ECON4450 Teacher: Prof. DU Julan [Course Outline]