This course discusses the theory concept and technology of financial derivatives. The main issues discussing in this course are: concept and technology of hedge, arbitrage and speculation for options and futures. The course covers the following subjects: Options and Futures markets: history, quotations and characteristics; Options and Futures pricing and the binomial model; Pricing options using Black- Scholes model；Pricing sensitivities; Hedging with options and Futures; Options and Futures strategies: speculation and spreading.