Single-Period Financial Markets, Multi-Period Financial Markets, Absence of Arbitrage and Completeness, The Binomial or Cox-Ross- Rubinstein Model, Pricing of Contingent Claims

Learning outcomes

At the end of the module students are able to understand the fundamentals of mathematical finance in discrete time. They will understand the principles of arbitrage theory and will be able to price financial derivatives as well as hedge against their risk in single- and multi-period financial market models.
Number of credit hours per week 3