MKF_FIDE Derivatives of Financial Markets

Faculty of Economics and Administration
Spring 2024
Extent and Intensity
26/0/0. 6 credit(s). Type of Completion: zk (examination).
Teacher(s)
doc. Ing. Tomáš Plíhal, Ph.D. (lecturer)
Guaranteed by
doc. Ing. Tomáš Plíhal, Ph.D.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance – Faculty of Economics and Administration
Prerequisites
FORMA(K)
Completion course Mathematics, Statistics, Financial Markets
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
The course Financial Derivatives deals primarily with fixed and conditional term derivative instruments such as forwards, futures, swaps and options. It explains the ways in which derivatives are used in the financial markets, especially in managing interest and currency risk, enables to understand the nature of financial derivatives, their valuation and the specifics of exchange trading of futures and options.
Learning outcomes
At the end of this course the student will be able: define financial derivatives and understand their specific characteristics; understand and explain differences between fixed future contracts and options; evaluate financial derivatives and suggest their use.
Syllabus
  • Schedule:
  • 1. Introduction to financial derivatives
  • 2. Forwards and futures
  • 3. Determination of forward and futures prices
  • 4. Swaps
  • 5. Options
  • 6. Options trading strategies and hedging
  • 7. Option pricing - Binomial trees
  • 8. Option pricing - Black-Scholes model
  • 9. The Greeks and volatility
  • 10. Options on stock indices, currencies, and futures
  • 11. Structured products 1
  • 12. Structured products 2
Literature
    required literature
  • HULL, John. Options, futures, and other derivatives. Global edition. Harlow: Pearson, 2018, 891 stran. ISBN 9781292212890. info
    recommended literature
  • PIRIE, Wendy L. Derivatives. Hoboken: Wiley, 2017, xix, 597. ISBN 9781119381815. info
  • BLÜMKE, Andreas. How to invest in structured products : a guide for investors and investment advisors. Chichester: Wiley, 2009, xvi, 374. ISBN 9780470746790. info
  • BODIE, Zvi, Alex KANE and Alan J. MARCUS. Investments. 10th global ed. Maidenhead: McGraw-Hill Education, 2014, xxviii, 10. ISBN 9780077161149. info
Teaching methods
Tutorial, self-study, solution of examples
Assessment methods
Requirements for completion: A total of 100 points can be earned for the written exam. The final grade is based on the following scale:
A 100 – 91, B 90 – 81, C 80 – 71, D 70 – 61, E 60 – 51, F 50 - 0

"Any copying, recording or leaking tests, use of unauthorized tools, aids and communication devices, or other disruptions of objectivity of exams (credit tests) will be considered non-compliance with the conditions for course completion as well as a severe violation of the study rules. Consequently, the teacher will finish the exam (credit test) by awarding grade "F" in the Information System, and the Dean will initiate disciplinary proceedings that may result in study termination."

If the student enrolls in the course while going abroad, he must pass all tests and exams upon his return.
Language of instruction
Czech
Further comments (probably available only in Czech)
The course is taught annually.
The course is taught: in blocks.
Note related to how often the course is taught: 12 hodin.
Information on the extent and intensity of the course: tutorial 12 hodin.
Credit evaluation note: k=1.
Listed among pre-requisites of other courses
The course is also listed under the following terms Spring 2010, Spring 2011, Spring 2012, Spring 2013, Spring 2014, Spring 2015, Spring 2016, Spring 2017, Spring 2018, Spring 2019, Spring 2020, Spring 2021, Spring 2022, Spring 2023.
  • Enrolment Statistics (recent)
  • Permalink: https://is.muni.cz/course/econ/spring2024/MKF_FIDE