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FIRE 481. Financial Derivatives

Credits: 3
Department: Finance, Insurance & Real Estate
Description: Characteristics and functions of financial derivatives. Corporate risk management applications of financial derivatives. Pricing models of derivatives and trading strategies using derivatives to hedge financial risks.
Prerequisites: FIRE 371, FIRE 471
Semester Offered: Fall
Grading Method: ABCDF

Student Learning Outcomes

1. Outline the main characteristics.
2. Apply the binomial model in option pricing.
3. Solve the option pricing problem using the Black-Scholes-Merton method.
4. Design appropriate option strategies to control equity risk.

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