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Description:	This module will introduce students to the traded and over-the-counter derivatives markets. The main derivatives contracts will be described, and there will be discussion of the various practical issues connected with investment in the derivatives market. The module will convey the basic concepts and analytical methodology for the valuation of derivatives and the corresponding hedging parameters.
Topics:	Introduction to Derivatives Forward and Futures Valuation. Futures Marking-to-Market. Cost of Carry Concept. Option Valuation. Mechanics of Options. Volatility Analysis. Trading strategies. Hedging with options.  Exotic Options. Introduction to Interest Rate and Cross Currency Swaps. Swaps Valuation. Swaptions. Synthetic Derivatives. Credit Risk Derivatives. Hedging with Derivatives.
Teaching:	28 hours during first semester