Please note! Course description is confirmed for two academic years (1.8.2018-31.7.2020), which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.
By the end of the course students will be able to show detailed understanding of the derivatives markets, the instruments and the principles of risk management. The course reflects both theory and practice and it covers diverse areas such as equity, index, foreign currency, commodity and fixed income derivatives.
Schedule: 11.01.2021 - 22.02.2021
Teacher in charge (valid 01.08.2020-31.07.2022): Sean Shin, Matti Suominen
Teacher in charge (applies in this implementation): Sean Shin, Matti Suominen, Yu Xiang
Contact information for the course (applies in this implementation):
CEFR level (applies in this implementation):
Language of instruction and studies (valid 01.08.2020-31.07.2022):
Teaching language: English
Languages of study attainment: English
CONTENT, ASSESSMENT AND WORKLOAD
Main topics are arbitrage, binomial models, Black & Scholes model, extensions to Black & Scholes model, interest rate derivatives, exotic options, and issues in risk management.
Assessment Methods and Criteria
2. Exercises and cases (50%)
3. Written examination (50%). The examination will be based on the lectures, handouts and the course literature.
Classroom hours 24 h
Exercise hours 12 h
Class preparation 34 h
Exercise preparation 50 h
Exam preparation 36 h
Exam 3 h
Recommended text for fixed income part: Handbook of Fixed Income Securities by Pietro Veronesi
Recommended text for the derivatives part: Options, Futures, and Other Derivatives by John C. Hull
Other material distributed by the lecturer.
Substitutes for Courses
Substitutes a course 28C00400 Derivatives and Risk Management. It is possible to include only one of these courses into the degree.
Rahoituksen perusteet or Principles of Corporate Financial Management
SDG: Sustainable Development Goals
1 No Poverty
8 Decent Work and Economic Growth