This course focuses on options, futures, forward, and swaps at an advanced level. It introduces a framework for pricing derivative securities by arbitrage, the binomial model, and the Black-Scholes formula. It shows how derivative securities are used to achieve various hedging objectives and advanced trading strategies. Designing and valuing swaps are covered. Options on stock indices, currencies, and futures and exotic options are also discussed. Finally, the course includes the practical implementation of speculative trading strategies using options. Prerequisite: BAF 450. FINANCIAL RISK MANAGEMENT THE DEGREE OF MASTER OF SCIENCE IN FINANCIAL RISK MANAGEMENT PROGRAM (MS-FRM) The Master of Science (MS) in Financial Risk Management is a rigorous, industry-aligned program designed for professionals and recent graduates seeking to develop advanced risk analysis, financial modeling, and strategic decision-making skills. This AACSBaccredited program integrates quantitative methodologies, regulatory frameworks, and risk mitigation strategies, ensuring graduates are well-prepared to solve complex financial environments with precision and foresight. Graduates will be poised for leadership roles in financial institutions, regulatory agencies, and multinational corporations, making strategic decisions that enhance financial stability and drive sustainable growth. With adequate effort, graduates will be well prepared to sit for the Financial Risk Manager (FRM®) professional certificate and to pursue education in doctoral programs. The MS-FRM is designed to attract: • Financiers, bankers, investors, auditors, and other finance/accounting/insurance Professionals preparing themselves for the next stage in their careers; • Fresh business and economics graduates preparing themselves to jump-start a career in financial risk management; • Professionals and business or economics graduates aspiring to pursue doctoral studies in financial risk management or any other subject related to finance; and • Professionals and graduates of other scientific disciplines, engineering and hard sciences in particular, contemplating a move into the world of finance and risk management. Mission The MS in Financial Risk Management (denoted MS-FRM) at NDU aims at providing aspiring candidates with a set of professional and technical skills allowing them to identify and manage various types of

Advanced Derivatives