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May 16, 2024
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FIN 4470 - Equity and Option Valuation
This course examines equity security analysis using various quantitative and qualitative methods. Further, the basics of equity derivatives are covered along with option market mechanics and valuation methods.
Requisites: FIN 3270 and 3410
Credit Hours: 3
Repeat/Retake Information: May be retaken two times excluding withdrawals, but only last course taken counts.
Lecture/Lab Hours: 3.0 lecture
Grades: Eligible Grades: A-F,WP,WF,WN,FN,AU,I
Learning Outcomes: - Describe fundamentals of equity securities.
- Describe the risk return relationship for equity securities.
- Describe option mechanics.
- Describe various option spread and combination strategies.
- Explain the margin system for option trading.
- Numerically solve equity and option valuation problems.
- Numerically solve simple and combination option profit problems.
- Numerically solve individual equity and portfolio profit problems.
- Critique equity valuation methods.
- Critique option valuation and trading methods.
- Compare the risk/return tradeoff for each counterparty in option transactions.
- Compare various hedging strategies that use options.
- Create hedging strategies using options.
- Create portfolios with various risk/return characteristics.
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