Financial Derivatives
Module code: EC7076
Module co-ordinator: TBC
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. 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
- Exam, 2 hours (100%)