Futures and Options

3 credits · Undergraduate Programs

A study of financial contracts for which the payoffs are contingent upon or derived from the value pre-specified underlying economic variables. Typical underlying variables include the spot price of a commodity and the price of a stock. These contracts are used extensively for hedging and speculative purposes. They also provide useful information about forecasts of the underlying economic variable in a process called "price discovery". Prerequisite(s): Admission to the Haskayne School of Business, Finance 317 and 443.