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.

LEARNING OUTCOMES

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.

Credits: 6

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

Content
  • Valid 01.08.2020-31.07.2022:

    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
  • Valid 01.08.2020-31.07.2022:

    1. Lectures
    2. Exercises and cases (50%)
    3. Written examination (50%). The examination will be based on the lectures, handouts and the course literature.

Workload
  • Valid 01.08.2020-31.07.2022:

    Classroom hours 24 h
    Exercise hours 12 h
    Class preparation 34 h
    Exercise preparation 50 h
    Exam preparation 36 h
    Exam 3 h

DETAILS

Study Material
  • Valid 01.08.2020-31.07.2022:

    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
  • Valid 01.08.2020-31.07.2022:

    Substitutes a course 28C00400 Derivatives and Risk Management. It is possible to include only one of these courses into the degree.

Prerequisites
  • Valid 01.08.2020-31.07.2022:

    Rahoituksen perusteet or Principles of Corporate Financial Management

SDG: Sustainable Development Goals

    1 No Poverty

    8 Decent Work and Economic Growth

FURTHER INFORMATION

Description

Registration and further information