Financial Engineering
Financial Engineering
Module Coordinator/Lecturers
Study Programmes
Master's degree programme in Innovative Finance
Project Description
Financial Engineering provides an introduction to concepts and methods around financial derivatives and their use in the creation of tailor-made payoffs according to client needs. The course covers the following topics:
- Derivatives Markets and Instruments: Forwards, Futures, Options, Swaps
- Pricing of Equity, Fixed Income, and Currency Derivatives
- Hedging Using Derivatives
- Decomposing structured products into their components
- Creating tailor-made payoffs from basic financial instruments
Teaching Method
- Interactive lecture
- Exercises to be solved individually or in groups between classes
Learning Results
After successful completion of the course, students will
Professional competences
Methodological competences
Technological competences
Professional competences
- understand the factors in the attractiveness of structured products for clients.
- select and apply appropriate valuation models for derivatives in practice.
- devise and/or analyse derivatives strategies for speculation, hedging and arbitrage.
Methodological competences
- decompose structured products into basic assets.
- create tailor-made payoffs from standard derivatives.
- understand valuation models for financial derivatives.
- use Greek variables in risk management and financial engineering.
Technological competences
- use R in the context of financial engineering.