Derivative Securities

UNIT 10: Derivative Securities

The final unit in the corporate finance workbook focuses on some derivative securities that are used in managing exposure to risk. The unit includes brief introductions to options and swaps and a simple explanation of how they are used. This unit is included so that you can begin to understand some complex securities that are encountered in future courses. For a more thorough discussion of risk management and the use of swaps and options, refer to the workbooks designed to cover these topics. This unit is included only to provide a brief introduction to the topics.


When you complete this workbook, you will be able to:

- Understand the basic concepts of the three main financial statements
- Recognize the significance of the time value of money in the financial planning process
- Identify techniques used by financial planners to evaluate, compare, and select investment alternatives
- Recognize the basic valuation concepts and calculations that apply to corporate valuation
- Identify fixed income securities that may be included in an investment portfolio and derivative securities that are used to manage risk

The continuation/full version of this article read on site - Basics of Corporate Finance