Course - Financial Derivatives - IF400
IF400 - Financial Derivatives
About
Examination arrangement
Examination arrangement: School exam
Grade: Letter grades
| Evaluation | Weighting | Duration | Grade deviation | Examination aids |
|---|---|---|---|---|
| School exam | 100/100 | 4 hours | D |
Course content
Risk management, term contracts, swaps, options, binomial pricing, Black Scholes model, Monte Carlo simulation, exotic options, credit risk.
Learning outcome
Knowledge
The course provides students with knowledge over commonly used financial instruments and derivatives. In particular the course treats the use, the risk, the pricing and hedging of commonly used derivatives in financial and commodity markets.
Skills
After the course, the students will have a command of, in principle, the pricing and hedging of any derivative within the framework of the standard binomial pricing model. The students will also be familiar with the well-known Black Scholes model and know how to utilize Monte Carlo simulation towards pricing and hedging.
General competence
The course is introductory, however, the students will acquire basic general knowledge of derivatives. In particular, they will have insight into the use of such instruments in the reduction of various risks met in businesses.
Learning methods and activities
Lectures and mandatory assignments.
Compulsory assignments
- Obligatoriske innleveringer
Further on evaluation
During the semester, there are three assignments that must be approved for admission to the exam. Supporting material allowed on exams: Approved calculator regarding NTNUs support material code B-D "specific basic calculator". Other calculators that are allowed in the course are: Casio FC-100V and Texas Instruments - BAII Plus.
Admission to study programme is required, see "special conditions".
Specific conditions
Required previous knowledge
None
Course materials
Robert L. McDonald: Derivatives Markets (latest edition). Changes may be announced. Course material decided finally as semester commences.
Credit reductions
| Course code | Reduction | From | To |
|---|---|---|---|
| BA400 | 7.5 | SPRING 2008 | |
| BA400 | 7.5 | SPRING 2008 | |
| TIØ4140 | 6.0 | AUTUMN 2017 |
No
Version: A
Credits:
7.5 SP
Study level: Second degree level
Term no.: 1
Teaching semester: SPRING 2025
Language of instruction: Norwegian
Location: Trondheim
- Economics and Administration
Department with academic responsibility
NTNU Business School
Examination
Examination arrangement: School exam
- Term Status code Evaluation Weighting Examination aids Date Time Examination system Room *
- Spring ORD School exam 100/100 D PAPIR
-
Room Building Number of candidates - Summer UTS School exam 100/100 D PAPIR
-
Room Building Number of candidates
- * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.
For more information regarding registration for examination and examination procedures, see "Innsida - Exams"