[major=BBA_CF | course_id=FIN402 | syllabus_id=13185 | semester=5 | combo=core | title=Derivatives]
Course ID: FIN402
Title EN: Derivatives
Title VI: Công cụ phái sinh
Credits: 3.0
Prerequisites: FIN202
Description: This course is a follow-up to FIN202 and FIN303, in which students touch on fundamental concepts of finance in general and corporate finance in particular. After the theoretical foundation established in FIN202 and FIN303, students now have chance to acquire indepth knowledge about Derivatives valuation and investment strategies.
Topics include: Futures and Forwards Valuation and Strategies, Option Valuation and Strategies, Swaps, Commodity Forwards and Futures, Financial Risk Management.
Student tasks: - Class attendance is strongly encouraged. Attend at least 80% of class hours in order to be accepted to the final examination
- Actively participate in class activities
- Fulfil tasks given by intructors after class
- Use their own laptop in class only for learning purpose
- Read the textbook in advance
- Access the course website (http://flm.fpt.edu.vn) for up-to-date information and material of the course, for online supports from teachers and other students and for practicing and assessment.
Tools: 
Course type: traditional
Decision: 1402/QĐ-ĐHFPT dated 12/12/2025
Approved date: 2025-12-12
CLO1: Demonstrate an understanding of the uses of financial engineering and risk management approaches and techniques used by modern organisation
[1] category=Class Participation; type=on-going; weight=10.0; duration=; question_type=; grading_guide=; completion_criteria=; clos=>0
[2] category=Group Assignment; type=on-going; weight=30.0; duration=In class (30 minutes/group); question_type=CLO1, CLO2, CLO3, CLO4; grading_guide=Part 1,2,3,4; completion_criteria=; clos=>0
[3] category=Individual Assignment; type=on-going; weight=20.0; duration=At home; question_type=; grading_guide=Applied theory; completion_criteria=; clos=>0
[4] category=Quizzes; type=on-going; weight=10.0; duration=In class (30-40 minutes/each); question_type=; grading_guide=Cover Part 1: Insurance Hedging and Simple strategies + Part 2: Forwards and Futures, Cover Part 3: Options + Part 4: Swaps, Interest rate Forwards and Options; completion_criteria=; clos=>0
[5] category=Final exam; type=Final exam; weight=30.0; duration=60 minutes; question_type=; grading_guide=Part 1: Insurance Hedging and Simple strategies cover 20%
Part 2: Forwards and Futures covers 30%
Part 3: Options covers 30%
Part 4: Swaps, Interest rate Forwards and Options covers 20%
of the total contents in the exam; completion_criteria=; clos=4
[1] desc=Derivatives Markets; author=McDonald R.L; publisher=Pearson; edition=3rd; isbn=; main=True; online=; note=
[2] desc=Introduction to Derivatives and Risk Management; author=Chance D.M. and Brooks R; publisher=Cengage Learning; edition=10th; isbn=; main=; online=; note=
Session 1: Part 0: INTRODUCTION
-Course Overview
-Introduction to AI Integration
Topic: Offline; Teaching type: LO1; LO: I
ITU: Book, Powerpoint, case study teaching notes, solution
Materials: FIN402
Tasks: https://drive.google.com/drive/folders/1VUNGwtIwrKysmmEZ1q866Fv7NJEfAzwW?usp=sharing
Download: Textbook Chapter 1

Session 2: Part 0: INTRODUCTION
Chapter 1: Introduction
What is a Derivative?
The role of Financial Markets
Derivatives in Practice
Buying and Short-selling Financial Assets
Topic: Offline; Teaching type: LO1; LO: I, T
ITU: Book, Powerpoint, case study teaching notes, solution
Materials: FIN402
Download: Textbook Chapter 1

Session 3: Part 1: INSURANCE, HEDGING, AND SIMPLE STRATEGIES
Chapter 2: An introduction to Forwards and Options
Forward Contracts
Call Options
Topic: Offline; Teaching type: LO1; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook Chapter 2

Session 4: Part 1: INSURANCE, HEDGING, AND SIMPLE STRATEGIES
Chapter 2: An introduction to Forwards and Options (cont')
Put Options
Summary of Forward and Option positions
Options are Insurance
Topic: Offline; Teaching type: LO1; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook Chapter 2
CLO2: Apply their knowledge of derivatives in solving problems involving financial risks including foreign exchange risk, interest rate risk, credit risk and portfolio risks
Session 1: Chapter 3: Insurance, Collars, and Other Strategies
Basic Insurance Strategies
Topic: Offline; Teaching type: LO1; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook Chapter 3

Session 2: Chapter 3: Insurance, Collars, and Other Strategies (cont')
Synthetic Forwards
Topic: Offline; Teaching type: LO1; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook Chapter 3

Session 3: Chapter 3: Insurance, Collars, and Other Strategies (cont')
Spreads and Collars
Topic: Offline; Teaching type: LO1; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook Chapter 3

Session 4: Chapter 3: Insurance, Collars, and Other Strategies (cont')
Speculating on Volatility
Topic: Offline; Teaching type: LO1; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook Chapter 3
CLO3: Make informed judgements on the use of derivative instruments
Session 1: Chapter 3: Insurance, Collars, and Other Strategies (cont')
Practice Exercises
Topic: Offline; Teaching type: LO1; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook Chapter 3

Session 2: Chapter 3: Insurance, Collars, and Other Strategies (cont')
Practice Exercises
Topic: Offline; Teaching type: LO1; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook Chapter 3

Session 3: Chapter 4: Introduction to Risk Management
Basis Risk Management: The Producer's Perspective
Topic: Offline; Teaching type: LO2; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 4

Session 4: Chapter 4: Introduction to Risk Management (cont')
Basis Risk Management: The Buyer's Perspective
Topic: Offline; Teaching type: LO2; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 4
CLO4: Identify and assess the impact of seminal developments in the literature on derivatives
Session 1: Chapter 4: Introduction to Risk Management (cont')
Why do Firms Manage Risk?
Golddiggers Revisited
Topic: Offline; Teaching type: LO2; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 4

Session 2: Chapter 4: Introduction to Risk Management (cont')
Selecting the Hedge ratio
Topic: Offline; Teaching type: LO2; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 4

Session 3: Chapter 4: Introduction to Risk Management (cont')
Practice exercises
Topic: Offline; Teaching type: LO2; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 4

Session 4: Chapter 4: Introduction to Risk Management (cont')
Practice exercises
Topic: Offline; Teaching type: LO2; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 4
Session 1: REVISION OF PART 1
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 2,3,4

Session 2: REVISION OF PART 1
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 2,3,4

Session 3: Part 2: FORWARDS AND FUTURES
Chapter 5: Financial Forward and Futures
Alternative way to buy a stock
Prepaid Forward Contracts on Stock
Topic: Offline; Teaching type: LO3, LO4; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 5

Session 4: Part 2: FORWARDS AND FUTURES
Chapter 5: Financial Forward and Futures (cont')
Forward Contracts on Stock
Futures Contracts
Topic: Offline; Teaching type: LO3, LO4; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 5
Session 1: Part 2: FORWARDS AND FUTURES
Chapter 5: Financial Forward and Futures (cont')
Uses of Index Futures
Currency Contract
Topic: Offline; Teaching type: LO3, LO4; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 5

Session 2: Part 2: FORWARDS AND FUTURES
Chapter 5: Financial Forward and Futures
Practice Exercises
Topic: Offline; Teaching type: LO3, LO4; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 5

Session 3: Part 2: FORWARDS AND FUTURES
Chapter 5: Financial Forward and Futures
Practice Exercises
Topic: Offline; Teaching type: LO3, LO4; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 5

Session 4: Quiz 1:
Textbook: Part 1 + 2
Topic: Offline; Teaching type: LO1, LO2; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Session 1: Chapter 6: Commodity Forwards and Futures
Introduction to Commodity Forwards
Equilibrium Pricing of Commodity Forwards
Pricing Commodity Forwards by Arbitrage
Topic: Offline; Teaching type: LO3, LO4; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook Chapter 6

Session 2: Chapter 6: Commodity Forwards and Futures (cont')
Carry Markets
Gold Futures
Seasonality: The Corn Forward Market
Topic: Offline; Teaching type: ; LO: 
ITU: 

Session 3: Chapter 6: Commodity Forwards and Futures (cont')
Natural Gas
Oil
Commodity Spreads
Hedging Strategies
Topic: Offline; Teaching type: LO3, LO4; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook Chapter 6

Session 4: Guidance on Individual Assignment
Topic: Offline; Teaching type: ; LO: U
ITU:
Session 1: REVISION OF PART 2
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 5,7

Session 2: REVISION OF PART 2
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 5,7

Session 3: Group Assignment Release
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution

Session 4: Part 3: OPTIONS
Chapter 9: Parity and other Option relationships
Put-Call Parity
Generalized Parity and Exchange Options
Topic: Offline; Teaching type: LO4; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 9
Session 1: Part 3: OPTIONS
Chapter 9: Parity and other Option relationships (cont')
Comparing Options with Respect to Style, Maturity, and Strike
Topic: Offline; Teaching type: LO4; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 9

Session 2: Part 3: OPTIONS
Chapter 9: Parity and other Option relationships (cont')
Practice Exercises
Topic: Offline; Teaching type: LO4; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 9

Session 3: Chapter 10: Binomial Option Pricing: I
A One-Period Binomial Model Tree
Topic: Offline; Teaching type: LO3, LO4; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 10

Session 4: Chapter 10: Binomial Option Pricing: I (cont')
A One-Period Binomial Model Tree
Topic: Offline; Teaching type: LO3, LO4; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 10
Session 1: Chapter 10: Binomial Option Pricing: I (cont')
Two or More Binomial Periods
Topic: Offline; Teaching type: LO3, LO4; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 10

Session 2: Chapter 10: Binomial Option Pricing: I (cont')
Put Options
Topic: Offline; Teaching type: LO3, LO4; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 10

Session 3: Chapter 10: Binomial Option Pricing: I (cont')
Options on other assets
Topic: Offline; Teaching type: LO3, LO4; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 10

Session 4: Chapter 10: Binomial Option Pricing: I (cont')
Practice Exercises
Topic: Offline; Teaching type: LO3, LO4; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 10
Session 1: Chapter 12: The Black-Scholes Formula
Introduction to the Black-Scholes Formula
Topic: Offline; Teaching type: LO3, LO4; LO: T
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 12

Session 2: Chapter 12: The Black-Scholes Formula (cont')
Applying the Formuala to Other Assets
Topic: Offline; Teaching type: LO3, LO4; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 12

Session 3: Chapter 12: The Black-Scholes Formula (cont')
Option Greeks
Topic: Offline; Teaching type: LO3, LO4; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 12

Session 4: Chapter 12: The Black-Scholes Formula (cont')
Practice Exercises
Topic: Offline; Teaching type: LO3, LO4; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 12
Session 1: REVISION OF PART 3
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook: Chapter 9,10,12

Session 2: Individual Assignment - Discussion
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution

Session 3: Submission of Individual Assignment
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution

Session 4: Part 4: SWAP:
Chapter 8: Swaps
Interest rate swaps
Topic: Offline; Teaching type: LO3, LO4; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook:
Chapter 8

Ref book: Chapter 12
Session 1: Part 4: SWAP:
Chapter 8: Swaps (cont')
Currency Swaps
Topic: Offline; Teaching type: LO3, LO4; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook:
Chapter 8

Ref book: Chapter 12

Session 2: Part 4: SWAP:
Chapter 12 (Ref Book): Swaps
Equity Swaps
Topic: Offline; Teaching type: LO3, LO4; LO: T, U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook:
Chapter 8

Ref book: Chapter 12

Session 3: REVISION OF PART 4
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: Textbook:
Chapter 8

Ref book: Chapter 8

Session 4: Quiz 2: Textbook: Part 3 + 4
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Session 1: Individual Assignment - Review and Feedback
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: prepare for Q&A

Session 2: Individual Assignment - Review and Feedback
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: prepare for Q&A

Session 3: Group Presentation
Topic: Offline; Teaching type: ; LO: U
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Session 4: Group Presentation
Topic: Offline; Teaching type: ; LO: U
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Download: prepare for Q&A
Session 1: Group Presentation
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Powerpoint, case study teaching notes, solution
Download: prepare for Q&A

Session 2: Group Presentation
Topic: Offline; Teaching type: ; LO: U
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Session 3: Group Presentation
Topic: Offline; Teaching type: ; LO: U
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Session 4: Group Presentation
Topic: Offline; Teaching type: ; LO: U
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Download: prepare for Q&A