This module includes derivatives, eg futures; forwards; options and swaps, and alternative investments, eg real estate, private equity, hedge funds and commodities. Derivatives have become an increasingly important issue in financial markets and in understanding and controlling financial risk. The topics covered include the types of derivative instruments and their characteristics. It also addresses how derivative instruments can be used to manage interest risk; foreign currency risk; commodity risk and credit risk. The alternative investment section of this module considers the various types of alternative investments and their characteristics. These include real estate; private equity/venture capital; hedge funds; closely held companies and inactively traded securities; distressed securities, bankruptcies; commodities and tangible assets with low liquidity.