2013-2015 Undergraduate Catalog

FIN 442 Derivatives Markets

Broad overview of different types of financial derivatives (forwards, futures, options, options on futures, and swaps), while focusing on the principles that determine market prices. To integrate the understanding of these instruments, the discussion emphasizes the relationships among futures, options, and swaps. Emphasizes the application of financial derivatives as risk management tools, not as instruments of speculation. Prerequisite: FIN 312 or permission of department chair.