Firms (financial and non-financial alike) are operating in an increasingly competitive global market environment. In addition, many firms are directly or indirectly involved with international activities (e.g., imports and exports) and thus require an understanding of currency risk, interest rate risk, and international financial markets. This course aims at providing students with an in-depth knowledge of finance theory and applications related to financial derivatives. Four interrelated topics are covered: (1) financial derivatives, (2) pricing derivatives, (3) hedging, and (4) financial derivative markets.