Covers the financial derivative subjects on the Society of Actuary FM/2 exam: general derivatives, options, hedging, investment strategies, forwards, futures, and swaps. Covers option pricing techniques in the MFE/3F exam: binomial option pricing, Monte Carlo Valuation using risk neutral probabilities, and Black-Scholes. Three lecture hours a week for one semester. Prerequisite: Actuarial Foundations 329 or Mathematics 329F; and Mathematics 362K with a grade of at least C-.