About the Course This course is designed for students whose careers will be enhanced by understanding the mechanics and pricing of derivative securities. Case applications will focus on the use of derivatives by corporations in managing price risk. The course provides students with a detailed introduction to options and option pricing as well as an overview of forward, future and swap contracts. We will draw upon the intuition and analytic tools developed to examine recent sophisticated products or strategies in which firms or investors have successfully or unsuccessfully attempted to use modern financial technology. These applications will use a combination of cases, notes, and readings.
Course notes to be passed out in class.
Computational abilities , including spreadsheets, word processing and access to the class Web page . Active discussions help everyone s comprehension of the subject. A positive attitude towards the course material is essential. Demonstrating this positive attitude will go a long way towards earning class participation points. Preparation for class also includes reading the assigned materials and a careful attempt at the study problems for the week.