FIN365 : Financial derivatives

Department

Department of Financing and Banking

Academic Program

Bachelor in Finance and banking

Type

Compulsory

Credits

Prerequisite

FIN361

Overview

The study of the course aims to introduce the student to the most important topics related to financial derivatives, and to get acquainted with the subject of the contract, which in turn varies between stocks, bonds, commodities, foreign currencies, etc., and for the student to analyze the derivatives for the investor to achieve gains or losses depending on the performance of the asset subject of the contract.

Intended learning outcomes

A. Knowledge and understanding:

To familiarize the student with the concept and principles of financial derivatives.
The student should be able to familiarize themselves with the concept and types of selection contracts.
That the student identifies the relationship between option contract prices, stock prices, and execution prices.

B. Mental skills:

The student should be able to understand the nature of financial derivatives.
The student should be able to comprehend the choice contracts.
The student should be able to analyze derivatives for the investor to achieve gains or losses depending on the performance of the asset subject of the contract.

C. Scientific and professional skills:

That the student master practical and professional skills in financial derivatives to serve the labor market.
That the student uses modern methods in financial derivatives to contribute to the practical development of organizations.
The student should be able to evaluate the follow-up of financial derivatives.

D. General and transferable skills:

The student should be able to solve problems and make decisions.
The student should be able to lead, supervise and work with a team.
That the student realize the skill of communication and dealing with others.

Teaching and learning methods

lecture.
Workshops.
Research papers are short.
Practical cases and exercises.

Methods of assessments

Midterm exam 20%.
Research paper 10%.
Activity 10%.
Final exam 60%.

Course content

Number of hours	scientific subject	Week
3	Introducing financial derivatives and option contracts, their concept and types.	1
3	The relationship between option prices, stock prices and strike prices.	2
6	Options Contracts: Why the Options Markets Work and How Options Contracts Work.	3-4
3	Basic strategies for long term buying and selling options.	5
3	Evaluate long term buy and sell options and price limits.	6
3	Forward contracts and the differences between forward contracts and futures contracts.	7
6	Structure of futures markets and trading mechanisms.	8-9
3	Dealers in the futures market and settlement mechanisms.	10
3	Forward financial operations.	11
3	Swaps: concept, interest rate swaps, exchange rate swaps.	12
3	The working mechanisms of interest rate swaps.	13
3	Currency and other types of exchange and credit risk.	14

Portfolio theory (FIN361)
Audit and control of banks (FIN465)
Various insurance (FIN464)
Re Insurance (FIN463)
Finance and real estate investment (FIN462)
Contemporary financial issues (FIN460)
Quantitative methods in finance (FIN369)
Takaful insurance (FIN368)
Financial indicators and investment funds (FIN367)
International investment (FIN366)
Financial derivatives (FIN365)
Securities and currencies analysis (FIN364)
Advanced corporate finance (FIN363)
Investment evaluation (FIN362)
Corporate finance (FIN360)
Financial analysis and forecasting (FIN269)
Financial institutions (FIN268)
Banking operations and policies (FIN267)
Financial markets (FIN266)
Islamic financing and investment formulas (FIN265)
Fundamentals of Islamic banking (FIN264)
Insurance basics (FIN263)
Financial policies (FIN466)
International Finance (FIN467)
Financial management (FIN260)
Strategic financial analysis (FIN468)
Banking marketing (FIN469)
Planing peincipals (PLA170)
Financing Principles (FIN160)
Accounting Principles I (ACC 130)
Principles of Accounting II (ACC131)
Investing basics (FIN262)
Banking basics (FIN261)