Corporate Risk Management and Valuation Using Derivatives

2 credits · Graduate

This course concentrates on topics pertaining to financial risks faced by corporations, in particular, the topics of "hedging" and "valuation." The course will consider the following type of question. What risks does a firm face? Should it hedge any of these risks? If so, how should the firm implement the hedge, i.e., using what instruments, and in what quantity? The main tool that the course will make use of is financial derivatives. An important aspect of the study of derivatives is the valuation method, which provides an understanding of the market prices and can be used to evaluate investment opportunities, corporate securities, and others. The course will consist of a mixture of lectures and case discussions.