This course focuses on financial-engineering applications using derivatives, alone and in combination with other financial instruments. In addition to studying complex financial-engineering structures, students consider applications of real options to the many industrial and assets management problems dealt with by business firms. Examples of applications include case problems in real options as well as issues in tax arbitrage, the construction of equity collars on restricted stock, the alteration of the investment characteristics of large portfolios, and the creation of synthetic financial instruments.
Prerequisites: FRE 6411, FRE 6511.
Additional material: FRE 6631 APPLIED DERIVATIVES FINANCE.pdf