This course is designed for MSc in Finance students to understand international finance and derivative securities. Students will apply the knowledge of mathematics of finance to the pricing and valuation of derivatives in general and currency derivatives in particular, e.g., forwards, futures, swaps, and options. Discussions will be extended to concepts of how to use derivatives to speculate, hedge and arbitrage. General topics covered are pricing models, trading strategies, and risk management using the derivatives.

CILO-1: Articulate basic operations of currency market and major derivative markets. CILO-2: Trade currencies and popular derivative instruments, with major emphasis on options and futures. CILO-3: Price derivatives such as options, futures, forwards, and swaps. CILO-4: Critically formulate trading strategies and risk management involving FX and derivatives. CILO-5: Articulate concepts of risk management such as the Greeks of derivatives.