An advanced study of option markets for students enrolled in the Master of Science in Quantitative Finance program. Examines the organization, regulation and theory of option markets and the relationship between option prices and underlying instruments. Provides detailed treatment of several pricing formulas. Includes the application of option pricing theory to corporate financing and investment decisions, and the valuation of stock, currency, index and futures options. Emphasizes the use of options as a tool for hedging and discusses the role of speculation and arbitrage strategies. Other topics include ethical issues and the application of technology in option markets. Students apply the concepts and theories in a detailed project involving data collection and analysis.

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