Loyola University Chicago

Quinlan School of Business

Derivative Markets

The MBA with a derivative markets concentration prepares you for job opportunities in top financial service companies.

Elective Courses

Take the following three courses to complete the derivative markets concentration.

Courses (3)

This is a course in investment analysis and applied portfolio management.  Topics will include investment policy and objectives, performance analysis and attribution, portfolio design, fixed income analysis and portfolio management, and equity analysis and portfolio management.  

Outcome: At the conclusion of this course the student should be able to:

  1. Create an investment policy statement 
  2. Analyze and value fixed income securities 
  3. Analyze and value equity securities 
  4. Develop and manage a portfolio of debt and equity securities.

This course is an introduction to options, futures, forwards and swaps as derivative securities. After an overview of these securities, a detailed examination of the methods of valuing options will be presented. Binomial trees and a discussion of the Black-Scholes option pricing model will be emphasized, followed by insights into option contracts as useful risk management instruments. A brief introduction to stochastic calculus is also given. Stock, index, debt, commodity, foreign currency and futures options are reviewed, and option strategies are analyzed as managerial tools in financial decision-making. Skills developed in this course include analytical and decision-making, creative thinking and communication. Throughout the course the notion of risk both as potential loss and opportunity for gain and its management will be highlighted. Ethical and social dimensions of risk management and the use and abuse of derivative securities will be emphasized to help students become responsible financial managers. The recent credit crisis and its origin in subprime mortgages will be reviewed. Students are encouraged to form teams and work jointly on five sets of homework problems and to also develop trading strategies. The course integrates functional areas in finance, accounting, economics, business ethics and quantitative methods.

Students are introduced to a plethora of financial derivatives, including both exchange-traded and OTC products, and then learn to use these products to hedge interest rate and other risks largely through the study of cases and detailed examples emphasizing the formation and use of synthetic positions.
Outcome: Students will be able to demonstrate an understanding of a wide variety of derivative products, as well as be able to use these products to manage interest rate and other risks.