This course focuses on the trading and practical applications of derivatives. Before taking this course, students are expected to have a basic understanding of derivative securities. In terms of trading, the course incorporates warrant trading activities. To enhance students' motivation and participation, the course is designed in a competition format and encourages students to form teams and participate in warrant trading competitions organized by securities firms. On the practical side, the course emphasizes option pricing and hedging. The pricing component covers both the underlying theories and important practical issues that arise in real-world applications. The hedging component includes warrant hedging practices as well as an examination of the effectiveness and costs of various hedging strategies.

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