P: F523 or F301. The course begins with an introduction to the primary
and secondary markets with an emphasis on the equity markets. Basic
theories for valuing equity and derivative securities are presented.
Covered in the equity arena are the Capital Asset Pricing Model,
Arbitrage Pricing Theory, and empirical tests of these models. Basic
option models, forward models and risk management techniques are applied

in the equity and currency markets. Required for finance Majors.