B.Com. (Financial Markets) Financial Derivatives Syllabus - Mumbai University 2026
This is the TY BFM syllabus under NEP 2020, in force from the academic year 2026-27. The University still sets the earlier Choice Based papers alongside it for ATKT candidates, so check which scheme your exam form names before you revise.
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Syllabus for Financial Derivatives
Module I: Introduction to Derivatives
- Meaning and evolution of derivatives. Types of derivatives
- forwards, futures, options, and swaps. Functions and significance of derivatives. Participants
- hedgers, speculators, arbitrageurs.
- Underlying assets – equity, index, currency, commodities. Structure of Indian derivatives markets – NSE, BSE, MCX, and International platforms.
Module II: Futures and Forwards Description
- Forward contracts – features, valuation, and limitations. Futures
- Types, features, margin mechanism, mark-to-market, settlement, and clearing. Futures pricing (cost of carry model).
- Hedging, speculation, and arbitrage strategies with futures. Contract specifications on NSE.
Module III: Options
- Options – types, features, terminology. Payoff profiles of calls and puts. Intrinsic value and time value.
- Option pricing fundamentals – binomial approach (intro only), Black-Scholes Model (conceptual).
- Option strategies – spreads, straddles, strangles, butterfly, covered call, protective put. Option Greeks – Delta, Gamma, Theta (conceptual).
Module IV: Swaps and Regulatory Environment
- Swaps – interest rate swaps, currency swaps – structure and applications. Introduction to credit derivatives.
- Risk management using swaps. Regulatory framework in India – SEBI, RBI, FEMA. Risk containment measures by exchanges.
- Overview of recent developments in Indian derivative markets.
Reproduced from the University of Mumbai syllabus for B.Com. (Financial Markets) under NEP 2020, in force from the academic year 2026-27. Wording is as printed in that syllabus. Module numbering is as printed there too.
The complete syllabus
This subject is cut from the University circular for its year. Open a document here if you want the whole thing rather than a single subject.