Options and Futures in Financial Decision Making --- This course addresses financial derivatives, which are some of the most important securities financial professionals need to understand. First, the characteristics of options, futures and swaps and their markets will be examined. Second, students will study the fundamental economic principles for the pricing and hedging of these derivative securities. Finally, the applications of derivatives securities in different areas of finance will be discussed. These include hedging risk management, portfolio insurance, index arbitrage, and corporate finance. The teaching will be done through lecture, discussions of current market conditions in different derivative markets and some trading simulations.
*Prior to Fall 2014, FIN 480 was offered as FIN 380.