Introduction to the characteristics and functions of basic types of financial derivatives.
Introduction and definition of terms, options, futures, forwards, swaps, the role of derivatives in the 2008 financial crisis.
1. identify and describe the basic types and functions of derivatives
2. describe and distinguish between types of derivatives markets and categories of participants in them
3. evaluate the benefits and costs of certain types of derivatives
4. interpret and comment on the risk and return profile of individual types of derivatives
5. judge which type of derivative would be useful in a particular business environment
