This course studies a particular class of financial assets, named derivative assets, whose value “derives” from other financial assets, referred to as the underlying asset. Derivative assets play a key role in modern capital markets, representing today many trillion USD.

They are an important instrument available to financial managers to manage their companies’ risk exposure. In this course we will examine the properties and characteristics of key derivative assets, such as forward contracts, future contracts and options, with an emphasis on the pricing of such instruments.

Prerequisites: Yes (see syllabus)