This advanced finance subject explores the concept of derivatives and their associated pricing, hedging and trading strategies. This includes the rationale underlying derivative market structures and mechanics and the application and pricing of derivative products.
|Faculty||Bond Business School|
1. Demonstrate advanced knowledge of the contractual features and properties of forwards, futures, options and credit derivatives on a range of underlying assets and commodities.
2. Apply appropriate models to price forwards, futures, options and credit derivatives and be able to reproduce the mathematical derivations and economic rationale underlying these models.
3. Demonstrate the ability to use option trading strategies and spreads and communicate the favourable financial conditions for each.
4. Demonstrate the ability to apply and explain structural, reduced form and transition intensity-based approaches to modelling credit risk.
5. Investigate several computational derivative and asset pricing models and produce a report to communicate the potential impacts of these methodologies.
Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge.
Assumed Prior Learning (or equivalent):
|Withdraw – Financial?||09/10/2021|
|Withdraw – Academic?||30/10/2021|