Options and Futures in Financial Decision Making --- This course addresses futures, options, and other financial derivatives. Students will develop a framework for analyzing and using these instruments in financial decision making. First, the characteristics of individual derivative securities and their markets will be examined. Second, students will study the fundamental economic principles for the pricing and hedging of these derivative securities. Finally, the applications of derivatives securities in different areas of finance will be discussed. These include hedging and risk management, portfolio insurance, index arbitrage, and corporate finance. The teaching will be done through lecture, case presentations, and discussions of major disasters in derivative applications and current market conditions in different derivative markets.
*Prior to Fall 2014, FIN 480 was offered as FIN 380.