Course Description
To introduce students to a variety of topics under the main head of financial derivatives and risk management, topics include:
• Nature, types, characteristics and functions of derivatives
• How derivatives are used:
o Speculative investment instruments
o Tools for managing cash flows
• Nature, types and Characteristics of risk
• Hedges against current value risks
• Pricing risks, currency fluctuation risk, interest rate risks.
• Risk identification, assessment and prioritization process
• Methods of risk monitoring
• Apply risk management techniques
BOOK TO BE USED
Fundementals of Future and Option Markets, 9/E John C. Hull, Pearson • ISBN-10: 0134083245 • ISBN-13: 978-013408324
EXPECTED LEARNING OUTCOM
- Outline the use of interest rate swaps as hedges for cash flows, hedges against current value and foreign exchange risk
- Outline the tools of risk management and state risk legislation
- Describe the concept of forward and future markets
- Explain the use of derivatives as risk management instruments
- -Summarize the mechanism of hedging and analyse derivatives relating to interest rate and exchange rate
- Explain the concepts, types and process of risk management
Course ID: FIN 501
| Credit hours | Theory | Practical | Laboratory | Lecture | Studio | Contact hours | Pre-requisite | 4.50 | 4 | 4 | FIN 306 |
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