Options, Futures and Risk Management
Construct a firm picture of the purpose of derivative instruments like options, futures and swaps. See how they can be applied to portfolio management and risk mitigation. Play with innovative financial processes and complex risk management tools.
Your upfront cost: $0
Subjects may require attendance
- 16 Nov 2020
QS RANKING 2020
Times Higher Education Ranking 2020
On successful completion of this subject you will:
CLO1: Explain and evaluate various over-the-counter and exchange-traded derivatives and their market mechanics.
CLO2: Use arbitrage arguments in fair value estimation and designing hedging with derivative products.
CLO3: Compare and contrast the relative strengths and weaknesses of option pricing models and analyse common strategies involved in trading options.
CLO4: Apply derivative products to portfolio management and risk mitigation.
CLO5: Appraise how risk in quantified by banks and other institutions
- Forward and Futures Markets
- Forwards and Futures Pricing Principles
- Hedging with Forward and Futures Contracts
- Option Markets and Pricing – Part A
- Option Markets and Pricing – Part B
- Options Trading Strategies
- Advanced Option Trading Strategies
- Value at Risk
- Swaps – Part A
- Swaps – Part B
In order to enrol in this subject, you must be accepted into one of the following degrees:
No special requirements
This subject was previously known as Risk Management and Financial Engineering.
This subject provides a detailed understanding of how derivative instruments are used to enhance returns and manage risks. The subject is practically oriented, encompassing quantitative theoretical developments, the application of pricing to the business environment, and the development of quantitative financial skills. Students will explore innovative financial products and financial processes in equities, currencies, interest rates and commodities along with complex risk management tools.
- Test (Linked CLOs: 1 - 5) (20%%)
- Assignment (Linked CLOs: 2, 3, 4) (40%%)
- Invigilated Exam (Linked CLOs: 1 - 5) (40%%)
Check the learning management system (LMS) of your university for textbook details.