Derivative Securities [ MGEST2164 ]

MGEST1219 FINANCE

This course provides students with a framework :
- to understand the fundamental concepts of derivative
products (forward and futures, swaps, options);
- to develop the necessary skills used in valuing derivative
contracts (Ito's process, risk neutral valuation);
- to understand a wide variety of issues related to risk
management and investment decisions using derivatives.

At the end of this course, students will be able to:
- Describe and interpret the general features of basic
types of derivative securities, such as forward and futures
contracts, swaps, options, and basic structured products.
- Apply the No Arbitrage Principle to price derivatives in
an efficient financial market.
- Price derivative securities using mathematical models
and numerical methods.
- Design optimal strategies to use derivative instruments
for financial risk management and for financial engineering.