Columbia University - Introduction to Financial Engineering and Risk Management
- Offered byCoursera
Introduction to Financial Engineering and Risk Management at Coursera Overview
Duration | 18 hours |
Start from | Start Now |
Total fee | Free |
Mode of learning | Online |
Difficulty level | Intermediate |
Official Website | Explore Free Course  |
Credential | Certificate |
Introduction to Financial Engineering and Risk Management at Coursera Highlights
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Course 1 of 5 in the Financial Engineering and Risk Management Specialization
Introduction to Financial Engineering and Risk Management at Coursera Course details
- Introduction to Financial Engineering and Risk Management course belongs to the Financial Engineering and Risk Management Specialization and it provides a fundamental introduction to fixed income securities, derivatives and the respective pricing models
- The first module gives an overview of the prerequisite concepts and rules in probability and optimization
- This will prepare learners with the mathematical fundamentals for the course
- The second module includes concepts around fixed income securities and their derivative instruments. We will introduce present value (PV) computation on fixed income securities in an arbitrage free setting, followed by a brief discussion on term structure of interest rates
- In the third module, learners will engage with swaps and options, and price them using the 1-period Binomial Model. The final module focuses on option pricing in a multi-period setting, using the Binomial and the Black-Scholes Models. Subsequently, the multi-period Binomial Model will be illustrated using American Options, Futures, Forwards and assets with dividends.
Introduction to Financial Engineering and Risk Management at Coursera Curriculum
Course Overview
Course Overview
Course Overview
About Us
Pre-Requisite Materials
Discrete Random Variable and Distribution
Bayes' Theorem, Continuous Random Variable and Distribution
Conditional Expectation and Variance
Multivariate Distribution and Independence
The Multivariate Normal Distribution
Introduction to Martingale
Martingales Example 1
Martingales Example 2
Introduction to Brownian Motion
Geometric Brownian Motion
Vector: Independence and Basis
Vector: norm and inner Product
Matrix: Matrix Operations
Matrix: Linear Functions and Rank
Linear Optimization: Hedging Problem
Linear Optimization: Duality
Nonlinear Optimization: Unconstrained Nonlinear Problem
Nonlinear Optimization: Largrangian Method
Lesson Supplements
Prerequisite Qualification 1: Probability (I)
Prerequisite Qualification: Probability (II), Martingale
Prerequisite Qualification: Brownian Motion, Vector
Prerequisite Qualification: Matrix
Prerequisite Qualification: Optimization
Introduction to Basic Fixed Income Securities
Introduction to No-Arbitrage
Present Value of Cash Flow
Fixed Income Instruments
Floating Rate Bonds
Term Structure of Interest Rates
Forward Contracts: Introduction
Forward Contracts: An Example
Lesson Supplements
Lesson Supplements
3.1 Self-Check Quiz
3.2 Self-Check Quiz
Introduction to Basic Fixed Income Securities
Introduction to Derivative Securities
Swaps
Futures
Hedging Using Futures
Futures Excel
Options
Properties of Options
Introduction to Options Pricing
A Paradox Example
The 1-Period Binomial Model
Option Pricing in the 1-Period Binomial Model
Pricing Derivative Security int he 1-Period Binomial Model
Lesson Supplements
Lesson Supplements
4.1 Self-Check Quiz
4.2 Self-Check Quiz
4.3 Self-Check Quiz
Introduction to Derivative Securities
Option Pricing in the Multi-Period Binomial Model
The Multi-Period Binomial Model
An Example: 3-Period Binimoal Model
What?s Going On?
Pricing American Options
An Example of Pricing American Options
Replicating Strategies and Self-Financing
Dynamic Replication and Risk-Neutral Price
Pricing with Dividends with Binomial Model
Pricing Forwards and Futures with Binomial model
The Black-Scholes Model
An Example: Pricing a European Put on a Futures Contract
Lesson Supplements
Quiz Instructions
Introduction to Assignment
Solutions to Assignment 1
5.1 Self-check Quiz
5.2 Self-check Quiz
5.3 Self-check Quiz
Option Pricing in the Multi-Period Binomial Model
Assignment 1
Introduction to Financial Engineering and Risk Management at Coursera Admission Process
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