Prerequisite: (1603322)
This course involves the advanced study of derivative securities including their structure and uses in speculating, hedging, and taking advantage of arbitrage opportunities. The objective is to develop a way of thinking that is necessary in using these securities in managing financial risk while recognizing the risks that these securities themselves can create (i. e., financial engineering).Thus, this course is demanding in the sense that it requires understanding how financial markets with derivative securities modify the risk return profile relative to financial markets where these securities do not exist.