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BA512 Financial Markets And Institutions
Course Abstract This course introduces the practical uses of interest rate swaps, and financial futures and options, forex (currencies), corporate and treasury bonds market. In addition to being a financial instruments class, this course emphasizes how derivatives can be used to accomplish more fundamental business and management goals, such as reducing undesired risk exposures or exploiting perceived profit opportunities. This course not only reviews the strategic aspects of why and how companies use derivatives but also helps students understand why firms hedge, how firms use derivatives in capital budgeting, how firms manage financial and non-financial risk on an enterprise-wide basis, how firms use derivatives strategies to identify and exploit "real options" (e.g., patents and time-to-build decisions), and the like.
Prerequisite BA307 Managerial Finance
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