This course is an introduction to financial derivatives. The primary emphases are the valuation and practical application of these instruments for both hedging and speculation. Topics include the characteristics of options, forward contracts, futures, and swaps; arbitrage and the valuation of derivatives; creating value and profit diagrams; and the structure of the derivatives markets. Ethical and economic issues associated with the use of derivatives as reported in the current financial press will also be covered
FINA.3010 Financial Management, or FINA.3210 Investment and Portfolio Analysis.