Risk Management

3 credits

Introduction to the financial instruments, methods, and tools used in financial risk management. Methodology applies to both corporate and investment settings for managing exchange rate risk, interest rate risk, market risk, and credit risk. Focuses on three types of derivative securities: forwards and futures, options, and swaps. Understanding of the basic properties of these instruments, their hedging uses, and their valuation principles. Value-at-risk and options theory will also be covered. [3- 0-0] Restricted to students in the Minor in Management. Third-year standing. Prerequisite: MGMT_O 310.