This course provides an analytical approach to the understanding of the structure and operation of capital markets - markets for stocks, bonds, currencies, futures, swaps, derivatives, unit trusts, venture capital and hedge funds. Major topics include: valuation of assets in general, theory of efficient portfolio, the tradeoff between risk and return, hedging and arbitraging, efficient markets, CAPM theory of assets pricing, pricing of futures, Black-Scholes formula for options pricing and the securitization of housing mortgages, etc.