Financial derivatives and smart contracts

Module title:

Financial derivatives and smart contracts

Module overview:

The objectives of the Financial Derivatives and Smart Contracts course are to enable students to acquire knowledge about:
basic concepts, types and functions of financial derivatives, including options, futures , forwards and swap contracts,
how derivatives are used for hedging , speculation, and arbitrage,
application of smart contracts in financial derivatives,
how psychological factors affect derivatives markets and investor decisions,
the regulatory framework that includes financial derivatives and smart contracts,
on the latest trends and innovations in the field of derivatives, including cryptocurrencies and tokenized derivatives, and their role in the modern financial ecosystem.
The course combines familiarization with the theoretical framework and practical aspects of financial derivatives and smart contracts, including the analysis of business cases, work on projects and the use of simulation tools. Students will get an insight into the way financial derivatives and smart contracts work. The course will help students develop both the technical and strategic skills needed to succeed in the rapidly changing financial sector.
Students will learn about:
The basics of financial derivatives and their use.
Application of derivatives in hedging, speculation and arbitration.
The roles of smart contracts in financial derivatives.
The influence of psychological factors on the market of financial derivatives.
Regulatory framework of financial derivatives and smart contracts.
Trends and innovations in the field of financial derivatives.
Practical aspects of financial derivatives and smart contracts.

Literature:

Required readings:
1. Brooks, RE and Chance , DM (2024) Foundations of the Pricing of Financial Derivatives : Theory and Analysis . Haboken , NJ: John Wiley and Sons .
2. DiMatteo , LA, Cannarsa , M. and Poncibo , C. eds . (2023) The Cambridge Handbook of Smart Contracts , Blockchain Technology and Digital Platforms . Cambridge: Cambridge University Press.

Supplementary readings:
Solorio , K., Kanna , R. and Hoover, DH (2019) Hands -On Smart Contract Development with Solidity and Ethereum : From Fundamentals to Deployment . Sebastopol , CA: O´Reilly .
Bacha, OI (2023) Financial Derivatives : Markets And Applications (5th ed .). Singapore: World Scientific Publishing .