Financial Economics D2 7.5 credits

About the course

The objective of the course is to provide a deep knowledge and understanding for financial derivatives. The course starts by describing the futures market. The mechanics of the futures markets, hedging strategies using futures and the determination of forward and futures prices are described. A subsequent part of the course covers interest and currency swap contracts. The second part of the course is devoted to options. Mechanics of options markets, properties of stock options and trading strategies involving options are covered. Other topics regard binomial trees, Wiener processes and Ito´s Lemma, the Black-Scholes-Merton model for option pricing, options on stock indices, the Greek letters, volatility smiles and estimation procedures. Credit risk, credit derivatives, exotic options and interest rate derivatives are also covered.

Show syllabus

Apply

Questions about the course?

Subject

Describe your enquiry or ask a question

First name

Last name

Email address

Please be aware that the University is a public authority and that what you write here can be included in an official document. Therefore, be careful if you are writing about sensitive or personal matters in this contact form. If you have such an enquiry, please call us instead. All data will be treated in accordance with the General Data Protection Regulation.