Based upon a foundation of futures and options contracts on crude oil, natural gas, and other products, the industry has developed a wide variety of customized derivative products that are designed to suit customer requirements. The pricing and risk management of energy derivatives raises issues which are distinctly different from those covered in conventional finance. In particular, the stochastic process assumed for energy prices must recognize both seasonality and mean revision, and conventional energy derivatives are often exotic from a financial perspective. This course covers the pricing and risk management of energy derivative products. Dates and Requirements Courses meet one evening a week for 11 weeks at IIT's Downtown Campus, just blocks from Union Station and the major exchanges.
Admission requires completion of an undergraduate degree.
The Center is now accepting applications for the Fall Quarter which begins Augusts 28, 2000.