Prerequisite: FIN 301. This course provides a study of financial institutions such as banks and financial instruments and markets such as the stock, bond, money and mortgage markets. The course integrates macro-economic concepts such as interest rate determination and the role of the Federal Reserve with asset valuation and the movement of capital in the financial marketplace. Commercial bank financial statements and key risks are covered. Periods of financial crises are also examined. Options, futures and swaps are discussed in the context of hedging risks in banks and other types of firms. The course builds heavily on the concepts of time value of money and risk and return, as developed in previous courses. Note: Cross-listed with FIN 433.