Description

Financial
markets represent the lifeblood of our global economy. These mechanisms promote
greater economic efficiency by transferring funds from individuals, businesses
and governments with an excess of available funds to those with a shortage. Funds
are transferred in the financial markets through the purchase and sale of
financial instruments (such as stocks and bonds). Short-term financial
instruments are available in money markets, while longer-term financial
instruments are purchased and sold in the world’s capital markets. Many
financial markets have been in existence for hundreds of years; however, the
modern era has brought along many new innovations such as securitizations,
derivatives, and cryptocurrencies.

This course reviews the
primary characteristics of the derivatives markets. This includes identifying
the various types of risk that impact financial markets and reviewing the types
of instruments traded in derivatives markets that are used to hedge those
risks. This includes detailed discussions of the four main types of derivatives:
forwards, futures, swaps and options.