Financial Derivatives (MBA)

Forwards, futures, options and swaps, their pricing and their use in hedging and risk management.

6 MonthsDuration 5Chapters23Topics

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Syllabus · पाठ्यक्रम

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01Unit 1: Introduction to Derivatives 4 topics

Meaning and types of derivatives
Participants: hedgers, speculators, arbitrageurs
Exchange-traded and OTC derivatives
Evolution of derivatives market in India; SEBI regulation

02Unit 2: Forwards & Futures 5 topics

Forward contracts: features and limitations
Futures contracts: standardisation, margins, mark-to-market
Pricing: cost of carry model
Basis and convergence
Index, stock and commodity futures

03Unit 3: Options 5 topics

Call and put options; option buyer and writer
Intrinsic value, time value and moneyness
Payoff of long and short positions
Option strategies: covered call, protective put, spreads, straddle, strangle
Put-call parity

04Unit 4: Option Pricing 4 topics

Factors affecting option prices
Binomial option pricing model
Black-Scholes model
Option Greeks: delta, gamma, theta, vega, rho

05Unit 5: Swaps & Risk Management 5 topics

Interest rate swaps
Currency swaps
Hedging with futures: hedge ratio and beta hedging
Credit derivatives basics
Risk management using derivatives

About

You will be able to

Explain the types of derivatives and the roles of hedgers, speculators and arbitrageurs
Price forwards and futures using the cost of carry model and explain margins and mark-to-market
Explain call and put options, their payoffs and common option strategies
Value options using the binomial and Black-Scholes models and interpret the Greeks
Use interest rate and currency swaps and hedge risk with index futures
Describe the Indian derivatives market and its regulation

Who it is for

MBA students of Semester 4 (AKTU) - Finance specialisation
Students aiming at treasury, risk management and trading roles

What you need

Investment Analysis & Portfolio Management (Semester 3) completed
Basic algebra and use of a scientific calculator

Questions

Which syllabus is followed?

The AKTU (Dr. A.P.J. Abdul Kalam Technical University, Lucknow) MBA syllabus of Financial Derivatives (Semester 4). If your own university's syllabus differs, the centre follows your university syllabus and units.

Do I need to trade to learn this subject?

No. All concepts are taught with worked examples and pay-off tables; no real trading is required.

How will I be tested?

Unit-wise MCQ tests and a final paper at semester level, plus practice on short and long answer questions from previous university papers.