CATALOG DESCRIPTION: Overview of options, futures, swaps, and related financial securities. Examination of exchanges, pricing issues, arbitrage, and trading strategies. Applications emphasize the use of derivative securities for managing financial risk.

COURSE OBJECTIVE: Students are introduced to the use of options, futures, swaps and other derivative instruments. The variety of existing and synthetic financial instruments available for risk management by speculators, hedgers and arbitrageurs is covered. Basic concepts for using options, forwards, futures, swaps and related contracts are analyzed. The nature of derivative markets, mechanics of trading, valuation, regulation, analysis and risk management strategies available for hedging and speculating are stressed.

PREREQUISITES: Finance 322 and QM 260 or Math 122

TEXT: Various Internet sources

INTERNET: http://hilltop.bradley.edu/~arr/courses/fin327/

OFFICE HOURS: T&Th 9:30 - 10:30am and online Monday 3:00-3:30

GRADE DETERMINATION: The final grade earned for this course will be based on participation, research and a series of exams. The exams contribute 50% of the final grade and the research contributes 50%.

The standard percentage breakdown will be used as a guide for determining final grades.

CLASS ATTENDANCE REQUIREMENTS: Students must know and understand all material discussed in class. This requirement includes contributions from other students as well as those of the instructor.

EXAM ATTENDANCE REQUIREMENTS: All exams must be taken as scheduled. If an exam is missed for any reason, a makeup exam may be scheduled. To request this option, a written explanation must be filed with the instructor. The weight of makeup exams will typically be 90% of the replaced exam's weight.