Course Detail

Financial Instruments for Financial Risk Management (35881, 50 Unit Course)

Course Description by Faculty

  • Veronesi, Pietro
  • Content

    Data show that 95% of Fortune 500 firms and over 60% of all non-financial firms use financial instruments to manage financial risk. This course uses a mix of lectures and case studies to introduce derivatives and their applications to financial risk management.

    We cover plain-vanilla instruments, such as forward, futures, swaps, options and credit default swaps, as well as the structured securities used by corporations and financial institutions to raise capital and shed risks. We discuss several case studies to illustrate the use – and misuse – of financial instruments. The case studies range in topics from the hedging needs of Airbus’ maker EADS and the luxury car company Porsche, to the debacle of AIG and the role of credit derivatives in the 2007 - 2008 financial crisis. At the end of the course, students will be comfortable with the costs and benefits of financial instruments and their use for an effective corporate financial risk management.

    View video presentation about the course.

    Class Meets Summer 2023:  8/14, 8/15, 8/16, 8/18, 8/19

  • Prerequisites
    Prereq: Cannot enroll if BUSN 35100 or BUSN 20405 taken previously
    • No non-Booth Students

  • Grades
    Grading will be based on class participation 5%, the short memoranda (10%), technical homework assignments (25%) and a final take-home exam (60%).
    • No pass/fail grades

  • Syllabus
  • Summer 2023Section: 35881-88EMBA2 9:00AM-12:00PMHarper CenterC0450 Unit Course
Description and/or course criteria last updated: March 1 2023