Course Descriptions

Course catalog descriptions for courses offered in all currently published terms.

Finance

 
FIN 580 Options and Futures in Corporate Decision Making
  2.25 hours Elective Terms Offered: F13(A), F14(A), W13(A), F13(B), W14(A)
  Advisory Prerequisites: FIN 503 or 513 or 551 
   
  Options and Futures in Corporate Decision Making --- This course introduces students to one of the most important and most technically challenging areas in finance: derivative securities. Derivative securities include options, futures and forward contracts and swaps among other securities. This course examines corporate risk management techniques and how derivatives can be used to manage risk. The course will also cover institutional characteristics of derivatives exchanges, OTC markets and market clearing mechanisms. Finally, we will examine the pricing of derivatives. Particular emphasis will be given to Black-Scholes model and the binomial option-pricing model. Applications will cover real options.