This master-level course focuses on the valuation, uses and regulation of derivative instruments - contracts or agreements whose values derive from the prices of underlying assets such as equities, commodities, interest rates and foreign exchange. The course is presented from the perspectives of corporate risk managers and institutional professionals who use these valuable products for controlling market risks. Coverage is presented of both exchange and off-exchange derivatives including futures, forwards, swaps, options and structured products including hybrid debt and depository instruments having embedded derivative features.

The objective of this course is to provide students a working knowledge of the market for derivative instruments. This will include developing an understanding of their institutional and regulatory framework, the value to our economy of these important, risk-shifting tools, and how these products are specifically used by corporate managers and investment professionals for financial risk management and enhancing firm value.