This course serves as a comprehensive introduction to derivative securities. Naturally, forward contracts, futures, options, and swaps are the focal point of the course. While the main emphasis is on the use of derivatives as risk-transferring/minimizing devices, valuations of such contracts are also included. A solid coverage of no arbitrage based pricing is provided as the common underlying premise to valuing derivative securities. Therewith, cost-of-carry valuation of forwards and futures, , binomial pricing of options, the Black-Scholes option pricing formula, and swap pricing are introduced.