Derivative Securities

AY2019/2020 Semester 1

Financial derivatives have grown at a phenomenal pace over the past two decades. However, there remain disagreements about the merits of derivatives. For example, Alan Greenspan, the former Chairman of the Federal Reserve Bank, believes that derivatives increase financial stability; whereas Warren Buffet, the famed investor, asserts that derivatives are financial weapons of mass destruction. This course helps students to gain better understandings of derivatives and introduces students to the usages and valuations of derivatives such as options, forward and futures contracts.