Course Overview: 

This foundational course on financial derivatives is designed for students of commerce and management. It provides essential knowledge and skills related to financial derivatives, offering a comprehensive understanding of how these markets operate and how participants use derivative instruments for trading and hedging activities. The course begins with an introduction to derivatives, covering key concepts, types, participants, regulatory bodies, and stock exchanges. Next, it explores various derivative instruments, including forwards, futures, options, and swaps. Students will learn how each instrument is traded and its practical applications in real-world scenarios. The following unit focuses on simple hedging strategies using forwards and futures, along with practical applications and payoff calculations. The primary goal of this course is to equip students with the skills necessary to manage and systematically mitigate risk in financial markets. This course lays the groundwork for further studies in risk management.

Faculty Name: Dr. Suresha B 

Course Platform