Applied derivatives

This unit builds on a basic derivatives course to provide a rigorous yet intuitive treatment of derivatives products with an applied focus. Topics include risk neutral valuation, binomial option pricing, the Black-Scholes-Merton model and the underlying mathematics, exotic options, Monte Carlo simulation, credit derivatives, Value-at-Risk, real options, model implementation. A simulated trading activity based on real time data will further enrich your understanding of the derivatives world obtained from your prior study.