This course covers options, forward contracts, futures contracts, and swaps; The concept of arbitrage; Fundamental option price theorems, put-call parity; Derivation of the Binomial and Black-Scholes option pricing models; Valuation of futures contracts; Stock index, interest rate and currency futures; Examples of hedging and speculation using options, futures and swaps; Portfolio insurance; Credit risk and interest-rate swaps; The swap spread versus the corporate-bond spread.

*Course content subject to change