About Course
Covers one of the most exciting and important areas in finance: derivatives. Financial derivatives such as forwards, futures, swaps, and options allow a risk manager to mitigate or even eliminate unwanted risks her company is facing, thereby allowing the company to focus on its comparative advantage. The main theme of this course is the use and pricing of forwards and futures, swaps and options. The main tool we will use is the binomial model and we will also discuss its close relative, the Black-Scholes model. We will discuss several important applications, such as financial and commodity forwards and futures, interest rates derivatives, swaps, exotic options, and corporate securities.