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B40.3335, C15.0043 Futures and Options

The course introduces advanced MBA and undergraduate Finance students to the theoretical and practical aspects of the markets for financial futures, options, and other derivatives. Over the last 30 years, the markets for these versatile instruments have grown enormously and have generated a profusion of innovative products and ideas. Derivatives have become one of the most important, and interesting, tools of modern finance, both academic and practical.

The course falls roughly in thirds: futures and forwards, options, and advanced derivatives topics. The subject matter inherently requires greater use of quantitative methods and theoretical reasoning than many other courses. However, the class focuses more on the practical than the theoretical aspects of derivatives. There is a multi-part project with market data, and other homework analyzing derivatives with Excel.

Syllabus

Course website (accessible only to currently registered students)