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.


This course complements the theoretical content of TU-E2210 Financial Engineering I. After the 3 cr. version of the course, the student understands how options and other derivatives are used in risk management and knows their practical limitations; is familiar with interest rate models and yield curve calibration; has a routine to solve simple problems in Ito calculus.

Additionally, after the 5 cr. course, the student knows the most important value adjustments and how to compute them.

Credits: 3

Schedule: 13.01.2021 - 25.02.2021

Teacher in charge (valid 01.08.2020-31.07.2022): Ruth Kaila

Teacher in charge (applies in this implementation): Ruth Kaila

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


  • Valid 01.08.2020-31.07.2022:

    Interest rate models, foreign currency instruments, option sensitivities, credit risk; regulation, financial technologies and high-frequency trading, visitors from industry

Assessment Methods and Criteria
  • Valid 01.08.2020-31.07.2022:

    Lectures, exercises, assignment, exam.

  • Valid 01.08.2020-31.07.2022:

    3 cr version: Lectures 12 h, exercises 12 h, preparation for the exercises and exam 57 h; 5 cr version: Lectures 12 h, exercises 12 h, assignment 54 h, preparation for the exercises and exam 57 h; 6 cr version: Lectures 12 h, exercises 12 h, assignment 54 h, written assignment 27 h, preparation for the exercises and exam 57 h.


Study Material
  • Valid 01.08.2020-31.07.2022:

    given during the course

  • Valid 01.08.2020-31.07.2022:

    mandatory: TU-E2210 Financial Engineering I or TU-22.1600 Financial Engineering

SDG: Sustainable Development Goals

    5 Gender Equality

    8 Decent Work and Economic Growth

    9 Industry, Innovation and Infrastructure



Registration and further information