Описание:III. Knowledge and Understanding
1. the concepts and market mechanics of different types of financial derivatives;
2. how financial derivatives are valued, based on no-arbitrage pricing and risk-neutral valuation;
3. how these instruments can be used to implement risk management strategies.
IV. Subject Specific Intellectual (Cognitive) skills
Having successfully completed this unit you will be able to:
4. Differentiate among different derivative products;
5. Price futures and options using suitable models;
6. Explain and apply trading/hedging strategies using futures and options.