Introduction to Financial Derivatives (IFID)

Course description

This course provides an introduction to the financial derivatives markets. The course considers how investors and other corporations efficiently can utilize derivatives instruments for purposes such as risk control, arbitrage and speculation. The definitions of different kinds of derivatives are treated, including futures and forward contracts, options and swap contracts. Valuation principles, parities and models are analyzed and applied, including the Binomial model.

Intended Learning Outcomes

The purpose of this course is to provide the participants with an understanding and intuition of the fundamental properties of standard derivatives as well as an ability to apply basic valuation methods. Upon completion of the course the students should be able to:

Knowledge and understanding:
1. Describe contracts and the functionality, describe concepts, and theories associated with standard derivatives contracts.
2. Understand the fundamental properties of standard derivatives contracts.

Skills and abilities:
3. Perform and interpret derivatives valuation by applying basic scientific valuation methods.
4. Perform and interpret derivatives trading strategies.

Judgement and approach:
5. Critically reflect on how commonly used assumptions and principles influence the derivatives markets.

Please Note !

There will be no new admissions to this course.

Course title:
Introduction to Financial Derivatives
Semester: Spring term 2018
Study period: 1
Rate of studies: 100%
Level: Undergraduate level (first cycle)
Credits: 7.5
Language of instruction: English


Course coordinator:
Doris Rehnström
Head of course:
Mia Hinnerich