Financial Innovation and Risk Management

Catalog description

Credits 1 to 3. 1 to 3 Lecture Hours. Development of an understanding of the nature of capital markets where various financial instruments trade; study of the underlying determinants of interest rates as well as the term structure of interest rates, the role played by the Federal Reserve System (the Fed) in the conduct of monetary policy and how it affects the economy; exploration of the risk-return relationship to financial derivatives like options; important major innovations in the financial markets; development of an understanding of a broad range of complex securities and how financial decision makers can use them for a variety of purposes including in refinancing and valuation decisions to adjust risk exposure and manage a variety of risks. Prerequisites: Graduate classification or approval of instructor.