* Determine and interpret technical parameters of various financial products
* Apply the no-arbitrage principle
* Explain the functionalities and uses of derivative financial products
* Develop and apply basic pricing models (e.g., the binomial N-step model, geometric Brownian motion, etc.)
* Price futures
* Derive and apply the Black-Scholes formula for plain-vanilla options
* Apply Markowitz portfolio optimization and critically interpret it
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Properties of stocks, bonds, indices, technical parameters of various financial products, basics of interest-rates and compounding, the no-arbitrage principle, properties and types of options, futures, and general derivatives, the put/call parity equation, trend and volatility of financial products, the binomial one-step and N-step model, valuation of derivatives in binomial N-step models, the geometric Brownian motion model, the Black-Scholes formula for plain-vanilla options, properties of the fair price of plain-vanilla options, implied volatility, Greeks, hedging
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