BUFN401 Option Theory and Derivatives
Overview: This course will introduce Option Theory and the concept of a derivative financial contract whose value is based on some underlying asset, e.g., a stock or bond or commodity. Option theory is a cornerstone of modern finance. Unlike the Capital Asset Pricing Model (CAPM) that determines an appropriate rate of return, option theory relies on arbitrage and the probability that an option will be exercised during some time interval. Common derivative types include stock and bond and index options, futures contracts, forward contracts, and swaps.
Instructors: Steve Heston, Mark Loewenstein, Pete Kyle, Brandon Han.