Derivatives and Risk Management

[0.50] credits · Graduate

This course examines the theory and application of financial derivatives within a comprehensive risk management framework. Students evaluate how firms can use derivatives strategically to manage risk and enhance firm value. The course begins with the structure, payoff characteristics and pricing of financial derivatives, including forwards, futures, and options. Then major sources of financial risks faced by firms are examined, such as interest rate, foreign exchange, credit and liquidity risk. Students analyze how derivative strategies can be used to hedge exposures and support financial decision-making.