Derivatives 5 credits

In this course, you will be introduced to the fundamental principles and applications of derivative instruments, including forwards, futures, options, and swaps. You will examine how derivatives are used for hedging, speculation, and arbitrage in financial markets by using both analytical and numerical tools. Theoretical frameworks such as no-arbitrage pricing, binomial models, and the Black-Scholes formula are covered in depth. Emphasis is placed on your understanding of market conventions, contract structures, and risk management strategies. The course will help you develop a combination of analytical rigor and practical insights, equipping you with the tools to model and evaluate derivative positions in professional contexts. A distinctive feature of the skills you will develop is the systematic and seamless integration of computational tools relying on Python for pricing, simulation, and risk analysis, enabling you to translate theory into practice through hands-on applications.