5110691: C20 Financial Derivatives

Description

• Derivatives Markets and Instruments: Forwards, Futures, Options, Swaps
• Pricing of Equity, Fixed Income, and Currency Derivatives
• Hedging Using Derivatives
• Financial Engineering

Learning Outcomes

Students …

• know how derivatives and derivatives markets work,
• apply standard models to price financial derivatives,
• use Greek variables in risk management and financial engineering,
• devise and/or analyze derivatives strategies for speculation, hedging and arbitrage,
• combine basic instruments to achieve desired payoff structures/decompose payoff structures into their basic components.

Lectures Method

Lecture

Literature

Hull, J.C. (2018). Options, Futures, and Other Derivatives. Pearson
Jorion, P. (2009) Financial Risk Manager Handbook. Wiley