FIN 6560 - Derivatives and Risk Management

A study of derivative securities, their pricing models and practical applications of risk management both in financial assets and corporates. Investigation of forward, futures and swap contracts, characteristics and their pricing. Statistical models for option pricing including Binomial Tree and Black-Scholes models, their uses, limitations and modifications for more generalized use will be discussed. Various trading strategies using derivatives, their upside and downside potentials for both speculation and risk management purposes. The structure and operations of the options and futures markets will be covered. Empirical work and evidence of options pricing models and future markets will be evaluated and tested.

Note: Open to graduate students only.

Prerequisites/Corequisites: Prerequisites: FIN 6120

Credits: 3 hours

Restrictions: Restrictions Enrollment in MScFin program and to HCOB MBA and MSA students with MScFin program director approval and the approval of the Director of Graduate Business Programs for MBA students and MSA advisor for MSA students.