Wash U Olin B-School slides, taught by Professor Hong Liu.

This course focuseson implementation of models for pricing and hedging derivative securities inthe equity, currency, and futures markets. Students will learn to writeprograms in VBA to implement the Black-Scholes model, binomial models, and Monte-Carlomethods. The derivatives studied will include exotic equity, currency, and futuresderivatives. The goals of the course are to learn more about the variousinstruments that are traded, the various assumptions and methods that may bechosen in modeling them, and the importance of the assumptions in determiningthe prices and hedges that are chosen.