This course provides an introduction to derivative contracts with a special emphasis on current practical applications in use today by financial institutions for investing, hedging, trading and issuing. The characteristics and features of futures, forwards, swaps, options and structured notes are all covered with a special emphasis on useful applications. For each of the four primary derivative contracts, we review in these lectures the appropriate definitions, terminology, market mechanics and theoretical fair value pricing.
Prerequisite: FRE 6003, FRE 6023, FRE 6103 and Graduate Standing
Additional material: SyllabusFRE6291_NYU_Poly.pdf