Financial Derivatives & Structured Products


Teaching Hours and Credit Allocation: 16 Hours, 3 Credits
Course Assessment: Coursework & Exam



The purpose of this course is to introduce students to complex derivative instruments and the techniques that are required for the valuation of these instruments. The course builds on the Black - Scholes framework and extends it to options with dividends, options with stochastic parameters and American options. It then introduces students to a variety of exotic options such as Asian, Barrier and Lookback options. The course will:

  • Introduce students to the principles and tools of derivatives valuation.
  • Familiarise students with the use of these tools, both through classes and through course work.
  • Examine recent developments in the theory and practice of valuation of exotic derivative instruments.
  • Enable students to understand basic structured products.