In this course, students develop an understanding of financial derivative instruments and their applications to corporate strategy and risk management. Throughout the course, we distinguish between using derivatives to appropriately manage risk and using them for speculation. We emphasize the perspective that derivative instruments are problem-solving tools that, when used correctly, can create value for financial and non-financial corporations. We develop the basic mathematical tools necessary for analysis, design, pricing, and implementation of derivatives in a managerial context. We cover forward, future, option, and swap contracts, hedging, arbitrage, and derivatives-pricing models. In addition, we introduce securitization, real options, and risk management. Through case preparation and discussion, students learn to model and evaluate derivative instruments and risk exposure.