View on GitHub


Finance 6470: Derivatives Markets

Finance 6470: Derivatives Markets

Spring Semester, 2017

Course Information

Instructor Information


Course Description

This course covers the economics of futures, futures, options, and swaps. By the end of the course, you will have a solid knowledge of how these products work, how they are used, how they are priced, how financial institutions trade them to hedge and speculate, as well as of the markets in which they trade. The single biggest idea from this class is arbitrage. We will discuss the concept of arbitrage deeply as it applies to financial derivatives, but also as it applies much more broadly.

Course Objectives

Huntsman School Pillars

This course aligns with the Huntsman School Pillars along the dimension of analytical rigor. In addition, we will be able to discuss the financial crisis and the role that derivatives played in that saga. As such ethical leadership will touched upon. Financial derivatives are perhaps the fastest growing products in any market. The entrepreneurial spirit comes strongly into play. Finally, a global vision is required to understand modern derivatives markets as the trading markets continue to become more and more global.


There is only one required textbook for this course:

I will also use some other books for some lecture material. Some of these other books are the following:

There will also be several assigned academic journal articles, which I will post on the course Google Drive.


The grade that you will earn will be determined by your ranking in the class based on the weighted total points accumulated on class preparation and participation, as well as on exams. There is not predetermined percentage of the class that will get an A or that will fail. If you all do excellent work, you will all earn exceptional grades. The weights given to each part of the class are as follows:

Topics (Subject to Change)

We will cover three broad modules:

Import dates: