2013/2014 BAHA_E162 Financial derivatives and their applications
English Title  
Financial derivatives and their applications 
Course information 

Language  English 
Exam ECTS  7.5 ECTS 
Type  Elective 
Level  Bachelor 
Duration  One Quarter 
Course period  Spring, Third Quarter
Changes in schedule may occur. Group XA: Monday 11.4014.15 week 56,8,1012. Wednesday 13.3016.05, week 56,8,1012. Group XB Wednesday 8.0010.35, week 56,8,12. Thursday 11.4014.15, week 57,1011 
Time Table  Please see course schedule at eCampus 
Max. participants  60 
Study board 
Study Board for BSc in Economics and Business
Administration

Course coordinator  


Secretary Louise Bruun Christensen  lbc.fi@cbs.dk  
Main academic disciplines  


Last updated on 02012014 
Learning objectives  
The course will provide students with
an understanding of how financial derivative markets function and a
basic toolbox for pricing and hedging derivatives. The toolbox will
combine finance theory with examples and practical exercises.
By the end of the course, the students should have a broad understanding of the derivative contracts discussed in the course. This means that they should be able to:


Course prerequisites  
The course requires knowledge of basic financial theory, as acquired for example in a standard corporate finance course. This is a quantitative course and the students should be interested in applying basic mathematics to real world problems.  
Examination  


Course content and structure  
This course deals with both theory
and application of derivatives markets and their uses in portfolio
allocation and risk management.The students will learn the
fundamental concepts of derivatives pricing and hedging and apply
them to a variety of debt instruments.The following areas are
covered in the course:


Teaching methods  
The course consists of lectures where
the basic concepts are introduced and explained and exercise
classes where the students have the possibility to gain a deeper
understanding of the concepts as well as practical knowledge of the
methods presented in the lectures.
Exercises and additional materials for discussion for the exercise classes will be made available in advance and the students are expected to actively participate in class. In addition to the exercise classes and lectures, there will be two voluntary problem sets, which the students can hand in in groups of 3 or 4. The problem sets will be corrected and an indicative grade will be given. Each problem set will be accompanied by a special session discussing main problems and various ways of solving them. The problem sets will be indicative of the exam. 

Expected literature  
The following textbook is indicative:
Hull, J: Options, Futures, and other Derivatives. 8:th Edition. PrenticeHall. 
Last updated on
02012014