This course is a practical to introduction financial derivatives. In particular, we will cover such things as Introduction to derivatives, forwards/futures vs. options; basic option strategies; put-call parity, futures & forwards pricing by arbitrage, options  the binomial model (European & American/early exercise), basic stochastic processes, Brownian motion, Geometric Brownian motion, Ito calculus, The Black Scholes PDE & the Black Scholes formula  derivations & use for pricing, hedging & the Greeks in the Black Scholes model, Numerical methods for option pricing & hedging, Implied volatility, advanced options, Bermudan option, Asian options, lookback options, binary options, barrier options, stochastic volatility & volatility derivatives, hedging errors when volatility is stochastic, preview of advanced models. The focus will generally be on applications and implementations of models in the R language as opposed to theoretical considerations and derivations.