A linear derivative is one whose value is directly related to the market price of the underlying variable. What does that mean? Derivatives can greatly increase leverage. When the price of the underlying asset moves significantly and in a favorable direction, options magnify this movement. Trading Derivatives

o Credit risk and credit derivatives with the key products and key issues being introduced early in the bookProvides the right balance of mathematical sophistication—careful attention to mathematics and notation This course is compulsory on the BSc in Finance and BSc in Financial Mathematics and Statistics. This course is available on the BSc in Accounting and Finance, BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Mathematics and Economics, BSc in Mathematics, Statistics and Business and Diploma in Accounting and Finance. This course is available with permission as an outside option to students on other programmes where regulations permit and to General Course students. There are many types of derivative contracts including options, swaps, and futures or forward contracts.

o The Applications Builder consists of a number of Excel functions from which users can build their own applications. It includes a number of sample applications and enables students to explore the properties of options and numerical procedures more easily. It also allows more interesting assignments to be designed.

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Note that future contract offers similar payoffs as forward contracts. However, futures contracts trade on exchanges; that is, the underlying asset and possible maturity date are clearly stated in the contract. Customize your course - Create a learning path with existing content, while developing original activities and uploading your own multimedia resources.