Financial Derivatives

Module code: EC7076

Module co-ordinator: TBC

Description 

Financial derivatives are vital tools in modern portfolio management. Derivatives are contracts which give the holder the right or obligation to trade an asset in the future at a price agreed today. They have been described as weapons of financial mass destruction, however, understanding how these products work and how they are priced is a key component in managing risk and making money in financial markets.

Topics Covered

• Pricing and Hedging with Forwards and futures
• Swaps
• Credit Derivatives
• Option strategies
• Black-Scholes model
• Binomial pricing model

Learning

• 20 one hour lectures
• 5 one hour tutorials

Assessment

This module is worth 15 credits. It will be assessed by a two-hour examination (100%).