MBA645 Derivative Securities (3 cr.)

This course provides a survey of derivative securities, including options, futures, forwards, and swaps. The role of derivatives in the financial system and the associated risks are examined. The principles of derivative pricing are explored with an emphasis placed on option pricing.

Upon completion of this course, students are expected to be able to do the following:

1. Determine appropriate hedging strategies to reduce or eliminate risk.
2. Evaluate aggregate measures of corporate risk.
3. Apply option pricing principles to security valuation.
4. Assess the effectiveness of the regulation of derivatives.