MBA 627. Derivative Securities and Financial Engineering

This course examines the use and valuation of derivative securities.  Emphasis is placed on the techniques of option valuation in the context of the risk neutral pricing paradigm, including the Black-Scholes Option Pricing Model and the Binomial Option Pricing Model.  The use of options and futures as risk management tools for hedgers and speculators is also examined.  The course concludes with application of valuation techniques for complex securities.

Prerequisite: MBA 604.