Module description
Syllabus
This module presents an overview of the world's financial markets, and a concise mathematical formulation of the main characteristics of financial instruments and trading practice, with an emphasis on quantitative aspects of options, futures, and other derivatives. Topics covered include: Spot markets for stocks, bonds, currencies, commodities. Forward markets. Commodity futures, financial futures. Stock options, index options, currency options, commodity options, interest rate options, options on futures. Interest rate swaps, currency swaps. Corporate bonds, treasury bonds, inflation-linked products. Energy and credit markets. Structured products, OTC derivatives.
Prerequisites
None. This is not a mathematically sophisticated module. All calculations can be done using school level mathematics. However, please be aware that that does not mean that the module is easy.
Assessment details
Assessment
2 hr written examination or alternative
Educational aims & objectives
Aims
To provide an introduction to the practical issues of trading instruments in the world’s financial markets.
Teaching pattern
Two hours of lectures per week
Suggested reading list
Suggested reading/resources (link to My Reading Lists)