Financial Derivatives Pricing

This course covers standard derivative pricing models. Both discrete time and continuous time techniques are considered. The course also includes an introduction to numerical option pricing, in particular the Monte Carlo Method. After this course, students should have a good knowledge of financial markets, security pricing, arbitrage, interest rates, risk and return. Contents: 1) Definition and classification of financial assets 2) Discrete-time pricing models 3) Continuous-time pricing models 4) Fixed income products 5) Monte Carlo methods for derivative pricing

• Evaluate the impact of investment strategies on portfolio risk and return
• Analyze various financial derivatives uses like hedging and speculation
• Assess pricing models for different financial instruments
• Develop and apply theoretical asset pricing models

• Basic familiarity with financial terminology
• Readiness to practice through applied exercises