The approach balances rigor and mathematical simplicity. The course gives the students a good view of the paradigms of asset valuation and their implications for financial asset management. This course introduces students to the pricing and hedging of derivative securities. The course covers options, forward contracts, futures contracts and swaps. Underlying assets include stocks, currencies, and commodities.
Students play a trading game.
This course involves the study of pricing, hedging, and risk management of fixed income securities and interest rate derivatives. This course is designed to integrate coursework in business and engineering through the completion of a team-based design project. This project is carried out by student groups, and involves the application of a financial model to a real-world problem. It deals with design issues encountered in the financial industry such as the design of new financial contracts, hedging and trading strategies, and valuation methods. The project typically includes model formulation, computer programming, and data collection and analysis.