Course Outline

EMGT 618 : Introduction to Financial Engineering: Futures and Options

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Last approved: Wed, 20 Jan 2016 13:51:31 GMT

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College of Business (WBUAD)
Introduction to Financial Engineering: Futures and Options
This course examines the use of forwards, futures, SWAPS and other financial derivatives for hedging, arbitrage and speculative purposes in the global environment. The course focuses on how firms use these instruments to manage risks such as exchange rate risk, interest rate risk and commodity price risk. The emphasis is on understanding the mechanics, valuation and management techniques behind financial engineering using these derivatives.

Introduce students to financial engineering. Students will develop an understanding of the language of futures, options and other financial derivatives. The course will provide students with the understanding of how firms manage interest rate risk, exchange rate risk, and commodity price risk using derivative.

Upon course completion, students will be able to:1. Define terms related to financial derivatives and derivatives markets.2. Understand the importance of incentives in financial markets.3. Calculate various parameters related to derivatives and factors that determine the value of derivatives. (i.e. various interest rates, credit risk, the greeks, cost of carry, exchange rates etc.)4. Assess various price quotes for various financial assets and derivatives.5. Diagram option payoffs.6. Apply the determinants of financial derivative prices.7. Calculate the value of options and other financial derivatives.8. Apply Value at Risk (VaR).9. Apply hedging strategies for various financial assets.

Located on the Daytona Beach Campus, the Jack R. Hunt Library is the primary library for all students of the Worldwide Campus. The Chief Academic Officer strongly recommends that every faculty member, where appropriate, require all students in his or her classes to access the Hunt Library or a comparable college-level local library for research. The results of this research can be used for class projects such as research papers, group discussion, or individual presentations. Students should feel comfortable with using the resources of the library. 

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Written assignments must be formatted in accordance with the current edition of the Publication Manual of the American Psychological Association (APA) unless otherwise instructed in individual assignments.

ActivityPercent of Grade
Input Grading Item100

Undergraduate Grade Scale

90 - 100% A
80 - 89% B
70 - 79% C
60 - 69% D
0 - 60% F

Graduate Grade Scale

90 - 100% A
80 - 89% B
70 - 79% C
0 - 69% F
Ronald Mau, Ph.D., P.E. - 3/26/2015
Jim Marion, Ph.D. - 3/26/2015
Tom Henkel, Ph.D. - 3/26/2015
Dr. Bobby McMasters - 3/26/2015
Key: 283