Course Topics
Functioning of futures markets; hedging strategies; determination of forward and future prices; swaps; functioning of options markets; trading strategies with options; Binomial trees; Vienna processes; Black-Scholes-Merton model; options on stock indices, currencies and futures; the "Greeks".

Teaching format
Lectures

Educational objectives
ILO (Intended Learning Outcomes) ILO 1 Knowledge and understanding ILO 1.1 Knowledge of the analytical method for estimating present values and discount factors for estimating the cost of capital and the valuation of bonds and equities ILO 1.2 Knowledge of the methods of medium and long-term financial forecasting and sensitivity analysis with simulation under uncertainty for risk management in corporate and international finance ILO 1.3 Knowledge and understanding of the international financial environment, multinational risk defence techniques and competitive strategies of global banks ILO 2 Ability to apply knowledge and understanding ILO 2.1 Knowledge of the use of spreadsheet programmes to value fixed income financial instruments and shares in listed companies ILO 2.2 Apply techniques to evaluate the performance of financial assets and understand the pricing mechanisms of high-risk financial assets and spot and forward interest rates ILO 3 Making judgements ILO 3.1 critically analyse the facts and the situations to be dealt with ILO 3.2 select the most appropriate quantitative and qualitative methods of analysis ILO 3.3 combine information and analytical methods, including the use of modern software packages, in a logical argument to find a solution ILO 4 Learning skills ILO 4.1 critically analyse and integrate data, information and future experiences, including using advanced software packages

Assessment
Written examinations

Evaluation criteria
Written examinations after 50% and at the end of the semester. 1st session: Assessment based on the mid-term exam (33.33%) and the final exam (66.67%). Without participation in the mid-term exam: final exam (100%). 2nd or 3rd session: final exam always 100%. Minimum points for a positive final examination: 18 out of 30+ points.

Required readings

John Hull: Options, Futures and Other Derivatives, Pearson, 11th edition, 2022.