The objective of this module is to provide an introduction to derivative products, namely futures and options in their many different varieties. We examine these products from both a speculative and hedging perspective and also consider advanced strategies such as intra and inter commodity spreads for futures as well as sophisticated option strategies used, not exclusively, to trade volatility. Considerable time is spent examining the sensitivities of option strategies to underlying factors, namely an options "Greeks". We also consider the Black-Scholes-Merton and the Binomial approaches to option pricing. In addition, Monte-Carlo simulation is used for the pricing of path dependent exotic options. Extensive use is made of Excel, including VBA, as well as some use of Matlab.