4108094: Financial Derivatives

Description

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

Lecture Goals

After completing this lectures, students know about the risks associated with financial derivatives as well as their potential for applications in risk management and financial engineering.

Learning Outcomes

• Know how derivatives and derivatives markets work
• 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

Interactive lectures with exercises

Admission Requirements

Successful completion of the module "Financial Economics and Markets"

Literature

• Hull, J. C. (2011). Options, futures and other derivatives (8th global ed.). Harlow: Pearson.

Materials

Slides will be available via moodle.