The first part of the course unit is concerned with an introduction of various financial derivatives and the derivative markets and special attention will be paid to the Taiwanese market. The second part of the course will involve with components affecting the prices of derivatives and with discussion of how the derivatives are used in the market.

On successful completion of the course unit students will be able to be familiar with concepts of financial derivatives and mechanism of these markets, and to understand how to use financial derivatives as a investment vehicle. The concept of financial derivatives include pricing mechanism, speculating, and hedging. The mechanism of markets is covered as well. Then, we learn how to use financial derivatives as investment vehicles.

Hull J. C., 2014, “Fundamentals of Futures and Options Markets”, Eighth Edition, Prentice-Hall, ISBN: 978-0-13-338285-3