UNIVERSITY OF WATERLOO

AFM 322: Derivative Securities

Comprehensive Revision Guide and Notes 2026

Part 01: About This Guide

Part 02: Sample Examination

Part 03: Suggested Solutions to Exam Paper

Part 04: Study Tips for Students

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University of Waterloo - AFM 322: Derivative Securities - Solutions

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University
University of Waterloo
School
Accounting and Finance
Course Code
AFM 322
Course Name
Derivative Securities
Notes Title
Comprehensive Revision Guide and Notes
Page Length
30

ACADEMIC YEAR 2026 - 2027

Built for AFM 322: Derivative Securities at the University of Waterloo, this updated self-study guide helps you master what examiners actually test. You’ll get a clear breakdown of the exam format, typical question styles, and marking focus, plus core practice questions with step-by-step solutions. Simple, well-labelled diagrams make key option and futures concepts stick for faster recall under time pressure. Topic-by-topic notes align to the latest syllabus so you can target high-value areas, avoid common pitfalls, and practice efficient methods. Use this guide to structure your revision, sharpen your technique, and approach the exam with confidence.

AFM 322: Derivative Securities

AFM322 is an introductory course on the valuation and applications of financial derivatives, including options, futures, forwards, and swaps. Key topics covered are option valuation models, arbitrage and option markets, option strategies and hedging, futures markets, hedging with futures, delta hedging, and the Greeks. Furthermore, the course explores plain vanilla swaps, interest rate caps and floors, swaptions, credit default swaps, Value at Risk (VaR), and Expected Shortfall (ES).

University of Waterloo

Studying for another course? Select a course below to review the resource details and what’s included.

COURSE CODE	COURSE NAME
AFM 101	Introduction to Financial Accounting
AFM 102	Introduction to Managerial Accounting
AFM 231	Business Law
AFM 272	Global Capital Markets and Financial Analytics
AFM 273	Financial Instruments and Capital Markets
AFM 274	Introduction to Corporate Finance
AFM 275	Corporate Finance
AFM 280	Introduction to Organizational Behaviour
AFM 291	Intermediate Financial Accounting 1
AFM 322	Derivative Securities
AFM 391	Intermediate Financial Accounting 2
ECON 101	Introduction to Microeconomics
ECON 102	Introduction to Macroeconomics
ECON 201	Microeconomic Theory for Business and Policy
ECON 221	Statistics for Economists
ECON 290	Models of Choice in Competitive Markets
ECON 322	Econometric Analysis 1
ECON 323	Econometric Analysis 2
ECON 371	Business Finance 1
ECON 372	Business Finance 2
ECON 423	Time Series Econometrics
MGMT 244	Principles of Marketing
PSYCH 292	Basic Data Analysis
STAT 202	Introductory Statistics for Scientists
STAT 443	Forecasting

MITCA

Updated for 2026

University of Waterloo - AFM 322: Derivative Securities - Solutions

INFORMATION

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RELATED COURSES

University	University of Waterloo
School	Accounting and Finance
Course Code	AFM 322
Course Name	Derivative Securities
Notes Title	Comprehensive Revision Guide and Notes
Page Length	30