Jun 01, 2026  
2025-2026 Graduate Catalog 
    
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2025-2026 Graduate Catalog [NOTE!!!! THIS IS AN ARCHIVED CATALOG. FOR THE CURRENT CATALOG, GO TO CATALOG.NIU.EDU]

ECON 540 - Financial Derivatives

Review of financial derivatives including futures, European and American options, and exotic options. Greeks, trading and hedging strategies. Pricing derivative securities with appropriate boundary conditions, including Black-Scholes formula, binomial trees, lattice models and finite difference methods. Simulation and variance reduction techniques. Interest rate models. 

Prerequisites & Notes
PRQ: ECON 590 or STAT 601 or consent of department.

Credits: 3