This unit provides students with an appreciation of options, futures and other derivative securities, and their role in risk management. The definitions of options, forward and futures contracts, their markets, characteristics and basic properties, and their use in hedging strategies for commodities, shares, bonds and currencies are the main topics. The elements and principles of pricing derivatives are also explained. -- Course Website
Prerequisites: (STAT1520 Economic and Business Statistics or equivalent) and FINA1221/2221 Introduction to Finance
