EPN-V2

ØABED4200 Derivatives Course description

Course name in Norwegian
Derivatives
Weight
10.0 ECTS
Year of study
2022/2023
Course history
Curriculum
SPRING 2023
Schedule
Programme description

  • Introduction

    The market for financial derivatives is one of the biggest in the world. The most important derivative securities are forwards, futures, options, and swaps. Derivatives are central instruments for companies when they deal with risk. This subject focuses on how companies and other institutions can reduce risk by using derivatives contracts. The course is taught in English.

  • Required preliminary courses

    ØABED3500 or ØABED4600 Investments

  • Learning outcomes

    Learning Outcomes:

    On successful completion of this subject the student

    ;

    Knowledge

    Have advanced knowledge of markets, trading and valuation of forwards, futures, options and swap contracts.

    Have in-dept knowledge about the theories behind valuation models such as Cost of carry for futures and Binominal and Black-Scholes for options.

    Have in-dept knowledge about central risk measures such as delta, gamma, vega, theta and rho.

    Can analyze new problems using valuation models such as Cost of carry for futures and Binominal and Black-Scholes for options.

    ;

    Skills

    Can analyze existing theories and methods in derivatives pricing.

    Can work independently on practical problems in valuing and trading derivatives contracts.;

    Can use valuation models such as Cost of carry for futures and Binominal and Black-Scholes for options independently.

    ;

    General competence

    Can contribute to the development and innovation of the use of derivatives contracts.

    Can communicate extensive and independent work in the use of derivatives contracts.

  • Teaching and learning methods

    Ingen

  • Course requirements

    Skoleeksamen (5 timer).;

  • Assessment

    Revisors håndbok

    Kalkulator i henhold til reglement

  • Permitted exam materials and equipment

    Gradert skala A-F.

  • Grading scale

    Det benyttes intern og ekstern sensor til sensurering av besvarelsene.;

    Et uttrekk på minst 25 % av besvarelsene sensureres av to sensorer. Karakterene på disse samsensurerte besvarelsene skal danne grunnlag for å fastsette nivå på resten av besvarelsene.

  • Examiners

    Anne Kari Ramboe Heimdal

  • Overlapping courses

    Students who have the subject ØABED3800 Derivatives in their bachelor's degree are not allowed to take this course.