BUS324 Options, Derivatives and Risk Management

The course will provide a thorough introduction to option pricing and the use of options in risk management and financial decision-making.

Key topics:

• Option pricing
• Risk parameters and probability distributions in theory and practice
• Embedded options in other contracts, real options
• Investment and hedging strategies using options

Knowledge

After completing the course, the student will:

• Have advanced knowledge of option pricing.

• Have in-depth knowledge of the use of options in risk management.

• Be able to apply option theory and methods in investment decisions.

• Be capable of utilizing option data to analyze risk and market outlooks.

Skills

After completing the course, the student will:

• Be able to analyze and critically assess financial markets using option data.

• Be able to analyze implied risk.

• Be able to apply relevant option pricing formulas in fund management and general risk management.

• Be able to conduct quantitative analyses of options markets (stocks, commodities).

General Competence

After completing the course, the student will:

• Be able to analyze relevant market data and understand the relationships between options, futures, and forwards.

• Be able to apply their knowledge and skills to real-world investment problems.

• Be able to communicate fundamental option theory and methods to non-specialists.

• Be able to engage in discussions with advanced practitioners regarding option-related issues.

• Be able to contribute to intellectual debates on option pricing and risk management.|