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This is a half semester course that covers basic derivatives including futures contracts, forward contracts, option contracts, and swap contracts. The principal focus of the course is on the use of these instruments by financial institutions. Basic valuation concepts are discussed. The use of derivatives for speculative purposes, hedging purposes, and arbitrage are discussed. The specifics of the contracts and the markets in which they trade are also discussed. The main focus is to give students in the Financial Information Services and Technology track a general understanding of the derivatives market and risk management.


Credits: 1.5:0:0:1.5
Pre-Requisite:FRE 6003, FRE 6023, FRE 6103
Co-Requisite: none
Notes: none