This course is designed as an introduction to the markets of derivatives. It covers most of the widely used derivative securities in practice, such as futures contracts, interest-rate and currency swaps, and various options. During the course we shall discuss, among others, the uses of derivatives in risk management, valuation of derivatives, the risk-neutral valuation principle, the Black-Scholes formula, binomial trees and portfolio insurance. Though not a prerequisite, a minimum background in corporate finance and/or financial markets will be desirable.