Hedging and DerivativesLaajuus (3 ECTS)

Objective

The students will understand derivatives both as instruments used for speculation as well as instruments used for hedging. The students will be familiar with the most common derivatives and trading strategies and will understand how the markets work.

The students will be able to evaluate information concerning different derivative instruments on the markets. The students will be able to create different strategies involving derivatives, and they will be able to calculate theoretical prices of call and put options.

Content

Theory of derivatives, pricing of derivatives and an overview of the Derivative Markets.
Exotic derivatives.