CFRM 415 B: Introduction to Financial Markets

Introduction to fundamentals of investment science and financial derivatives. Topics include basics of interest rates and present value calculations, fixed income securities, term structure of interest rates, the concept of financial arbitrage, pricing of futures, forwards, and call/put options, binomial lattice model, portfolio theory, and capital asset pricing model. Prerequisite: CFRM 405 and CFRM 410, may be taken concurrently.