This course prepares students with a basic understanding of derivatives of financial assets and commodities (such as futures, options, swaps, etc.). Pricing of these derivatives and their function in hedging and speculation is discussed. Recent innovations of pricing models for instruments such as interest rate derivatives, exotic options, and assessment of market risk based on the market prices of derivatives are also covered. Prerequisites: FIN 432, PSYC 350, and MATH 151 or instructor's permission