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Ethical

In: Business and Management

Submitted By nancybhatt
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Class of: 2013

Course Title: Financial Risk Management (FRM) Semester: III Credits: 3

Course Objective & Learning Outcome:
This course gives students a working knowledge of derivative instruments and their applications in managing various types of financial risks. While doing so, students would understand the organizational aspects of those risk functions and their roles & responsibilities. The emphasis is on mechanics, properties and valuation of forwards, futures, options and swap instruments. In covering these instruments, cases, examples and notes would be sought from markets so as to provide a holistic view of the financial market structure i.e., currency, fixed income, equity and money markets. Cases discussed in the class would be contemporary in nature drawn from international experience.

Pre-requisites:

Students are advised to be through with Financial Management I, Financial Management II and Quantitative Methods.

Students are expected to go through all the reading prescribed before every class and make a meaningful contribution through active class participation. The course is delivered through a combination of case discussions, problem solving, real life risk reports and simulation. The course would have an analytical and numerical flavor and hence students are required to bring their calculators/laptops to every class.

Text Book: 1. Hull, John C. & Basu, S., Options, Futures, and Other Derivatives, 7th Edison, Prentice-Hall of India, 2008. (JCH)

Suggested Text/References:
Dubofsky, David A., Derivatives : Valuation and Risk Management, Oxford Publication
Jorion, Phillip., Handbook of Financial Risk Management, John Willey Publication. (PJ)
Apte, P. G., International Financial Management, 4th Edison, Tata McGraw Hill (PGA)
Comptroller of the Currency Administrator of National Banks, Risk Management...

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