Derivate

The lecture “Derivatives” deals with the possible applications and valuation problems of derivative financial instruments. After an overview of the most important derivatives and their significance, forwards and futures are first analyzed. This is followed by an introduction to the theory of option pricing. The focus is on the valuation of options in discrete and continuous time models. Finally, the construction and application possibilities of derivatives are discussed, for example in the context of risk management.

Basic literature: Hull, J. (2012) Options, Futures, & Other Derivatives, Prentice Hall, 8th edition.