This course will cover a broad range of derivative products and markets and discuss how risks are managed by using financial derivatives. Forward and futures contracts including pricing and applications will be discussed and analyzed. Then, we will study swaps and options, and describes how they are used to hedge different kinds of risks and will analyze hedging strategies using options in stock and foreign currency markets. We then discuss options pricing and At the end of this course we will present some issues of current concern like the use of derivatives in hedging risk during the global financial crisis with VaR applications.
Prerequisite Courses