Introduction
The objective of this course is to provide students with a solid understanding of the pricing and hedging of options and聽futures contracts. Due to the remarkable growth in the use of financial derivative instruments in risk management and asset management, a clear understanding of derivative markets is essential to all specialists in finance. The course is designed around the central concepts of arbitrage, replication and hedging. While the economic reasoning behind these concepts will be strongly emphasized, some emphasis will also be placed on the practical aspects of the use of derivatives as well as the markets in which they are traded. This course would also prepare students for more advanced courses on derivatives.