General Information
Instructor(s)
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- Finance (m)
- Funds Management (r)
- Investment Banking (r)
- Real Estate (r)
- Risk Management and Financial Engineering (c)
Target Audience
Students who expect to work in finance or who would like to learn to use derivatives-based tools in personal trading and investing or who somehow have certain interest in derivatives markets. RSM 2306 is useful for general audience in terms of personal finance, while serving as a core course for the Risk Management and Financial Engineering major.
Format
There are 12 weekly sessions (2 hours per session) in the fall term
Course Mission
The objective is to provide a well-balanced, practically useful introductory course on derivatives. It emphasizes hands-on learning through a group-based project in trading options and futures. This course is the first of a three-course sequence in risk management and financial engineering. The coverage includes an extensive set of concepts, core theories and analytical tools, providing the basis for the other two courses in this sequence: Advanced Derivatives (RSM 2307) and Risk Management and Financial Engineering (RSM2308).
Course Scope
This course covers options, forwards, futures, and swaps. By the end of the course, students will have good knowledge of how these contracts work, how they are used, and how they are priced. They will also gain hands-on experience through an RPM hedge fund project that is oriented to trading derivatives.
Evaluation and Grade Distribution
| Component | Type | Weight |
|---|---|---|
| Assignment 1 | Group | 5% |
| Assignment 2 | Individual | 10% |
| Assignment 3 (Case) | Group | 10% |
| Hedge Fund Trading Project | Group | 25% |
| Final Exam | Exam Period | 50% |
Required Resources
The textbook is “Options, Futures, and Other Derivatives” by John Hull, 11th edition.
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