This course provides a detailed understanding of how derivative instruments are used to enhance returns and manage financial risks. It focuses on the conceptual aspects concerning the mechanics, pricing, valuation, hedging principals, arbitrage and trading strategies of major classes of derivative securities such as options, futures/forward contracts and swaps. The course is practically oriented, encompassing quantitative theoretical developments, the application of pricing to the business environment, and the development of quantitative financial skills. Students will explore innovative financial products, financial processes and complex risk management tools in a variety of market contexts.