Topic outline

  • Financial Engineering I

    Autumn semester 2024: this course is called TU-E2211 Financial Risk Management with Derivatives 1. Welcome!

    The lectures are given both in person and by zoom.


    How would you hedge a business where natural gas is bought at a floating price and sold at a fixed price with long contracts?

    aston Martin

    Your company buys components in dollars and sells cars in pounds. 
    What is the currency risk? How would you model the exchange rate as a stochastic process?


    Which interest rate should you choose for your mortgage, 3-month Euribor, 6-month Euribor or 12-month Euribor?

    This course will start on Wednesday, September 6, 2023 at 12.15 in lecture hall TU2, Maarintie 8, and via zoom. Welcome!


    Financial Engineering is a multidisciplinary field involving financial theory, engineering methods, applied mathematics and the practice of programming.

    This course is designed for students who wish to obtain positions in banking, financial risk management and consulting industries, or to work as quantitative analysts in finance departments of general manufacturing and service firms. Students who simply want to practice their skills in mathematics and finance are also most welcome.

    The aim of the course Financial Engineering I is to acquire an understanding in financial risk management. The objective is to get a mathematical intuition behind financial derivatives, as well as a working knowledge in option pricing, hedging, and volatility estimation. An optional assignment will be carried out using R, Python, or Julia and real market data.

    You can choose the 3, 5 or 6 credit version of the course. For more information, see Passing the course.

    The course can be included in the Minor in Financial Engineering, 20-25 cr. 

    Main teacher: Ruth Kaila

    Exercise teacher: Eljas Toepfer

    You can continue Financial Engineering studies with