Derivatives

(4 Credits)

This is a course in derivatives markets, focusing on their structure, valuation and strategies. It combines theory, empirical findings and practical applications. The main applications include equity, fixed income, foreign exchange and commodity (e.g., oil, gold, silver) markets. The key derivatives instruments discussed in detail include forwards, futures, swaps and options. Readings, cases and examples include the recent Financial Crisis, the 1987 Crash, LTCM, Metallgesellschaft, and the Covid-19 Economic Crisis. Pre-requisite: Foundations of Finance. Fulfillment: BUSF Finance elective; BUSM Non-Marketing elective; IMB Business elective.