Year
Year 4
Semester
Second Semester
Credit
3
Program Description
Covers the use of futures, options, and swaps to manage exposure to interest rate and currency risks.
About this course
This course explores advanced financial instruments used by corporations and financial institutions to manage risk. You will study the mechanics of futures, options, and swaps, focusing on their application in hedging against interest rate and currency volatility. The course bridges theoretical pricing models with practical risk management scenarios.
Who takes this course
This course is available to students in the Bachelor of Applied Business — Accounting program.
Credits: 3 · Hours: 45
Prerequisites
- FINA 2830 Investment Analysis Basics
- FINA 2840 Corporate Finance Theory
Learning outcomes
- Evaluate the role of derivatives in corporate risk management strategies
- Price and value standard futures, options, and interest rate swaps
- Construct hedging portfolios to mitigate specific financial exposures
- Analyze market risks associated with leveraged derivative positions
- Apply hedging techniques to manage interest rate and currency fluctuations
Evaluation
| Component | Weight (%) |
| Midterm examination | 30 |
| Case study analysis | 20 |
| Portfolio construction project | 25 |
| Final examination | 25 |