3 semester credits

Derivatives are financial contracts with values that are derived from the behavior of something else, such as interest rates, stock indexes, mortgages, commodities, or even the weather. Students in this course examine the types of market risk managers face in their day-to-day operations and the use of financial derivatives. The students focus on the theory and practice of the valuation of derivative securities such as forward contracts, futures contracts, swaps, and options and how they are used to mitigate risk. They also examine the risks faced by the market's underlying properties of each of these instruments and their use in managing the various risks faced by market participants.