Futures, Options and Risk Management

This course explores the methods for evaluating and managing the financial risk of companies and financial organisations. Particular emphasis is placed on fundamental pricing principles and the use of contemporary financial products in managing risk, including futures, forwards, options and swaps. Students will look at how organisations have implemented risk management practices in order to allow for calculated risks to be taken and to avoid overexposure to financial risks. For practical knowledge, students will look into the different types of derivative contracts and valuation techniques used in the industry today.
This course looks at existing policies and reflects on how these policies have been influenced by the substantial losses in financial markets from the past few decades, which have led to many companies forming risk management divisions of their own. By the end of the course, students will be equipped with problem-solving and analytical skills required to deal with financial risks. They will also have knowledge of relevant frameworks and tools required to effectively manage these financial risks.