Course Descriptions
Derivatives:
Economic Concepts ( 2 units )
This course covers the use and pricing of derivatives -
from the basic features of futures and options, to binomial
and trinomial option pricing and the Black-Scholes formula,
to implied binomial trees, to volatility measurement, and
to dynamic trading strategies and extensions to a wide variety
of exotic options. It emphasizes economic intuition and
understanding over detailed quantitative analysis. Important
quantitative techniques and arguments are completely developed
but with the simplest possible use of mathematics. Students
will also gain practical experience though a class project
in the programming, modeling and analysis of derivatives.
