Apr 25, 2025  
2024-2025 Graduate Catalog 
    
2024-2025 Graduate Catalog

ECO 592SEM - Econ of Risk Management


This course deals with the pricing of financial derivatives and their use in financial risk management. The first part develops the no-arbitrage principle and analyzes the pricing of forward and futures contracts, options, fixed-income derivatives, and corporate liabilities. The second part utilizes this knowledge to study techniques of managing credit risk, interest rate risk, exchange rate risk, and operation risk (i.e. what is known as financial risks). Throughout the course, the roles of financial institutions and innovation in hedging against market volatility will be addressed as well. Prerequisite: ECO 580 and ECO 526 or permission of instructor.

Credits: 3

Requisites: ECO 592 Pre-Requisite: ECO 526 and ECO 580.