FIN 580: Derivatives – Basic Strategies and Pricing

Contents
This course deals with different derivatives. The functioning of various derivative instruments like forwards, futures, swaps, and options will be explained. Furthermore, derivatives strategies will be analyzed. A particular focus of the course is the valuation of different basic and exotic instruments. The theoretical basis will be presented in lectures, while exercise classes will provide the opportunity to apply the concepts in practice.

Learning outcomes
After the completion of this course, students will have gained a thorough understanding of the spectrum of derivative financial instruments and their functioning. Furthermore, they will have learned how to implement investment strategies using derivatives. Students acquire a working knowledge of different valuation techniques, which is a necessary condition for trading these instruments and which also allows them to price new innovative products themselves.

Necessary prerequisites
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Recommended prerequisites
Students should have successfully completed the Mannheim Bachelor finance modules (or equivalent courses). They should have an understanding of simple derivatives and basic pricing techniques on a Bachelor level before taking this course! A working knowledge of basic mathematics (analysis and optimization) and statistics (expected values, variances, covariances) is required.

Examiner Performing lecturer

Prof. Dr. Stefan Ruenzi Prof. Dr. Stefan Ruenzi (Lecture), Santanu Kundu (Exercise Classes), Kai Maeckle (Exercise Classes)