Lecturer: Dr. Johannes Jaspersen
This course presents and analyses financial options, such as American options and European options. Students will learn how to valuate options using the binomial option pricing technique as well as the Black-Scholes option pricing formula. Risk-neutral probabilities will be introduced. This course also discusses insurance, risks related to commodity prices, exchange rates as well as interest rates, and studies how to manage/hedge such risks. The efficient portfolio choice and the Capital Asset Pricing Model will be recapped at the beginning of the course.
The main textbook for the course is Berk/DeMarzo: “Corporate Finance”, 4th ed., 2017.
- There is no application needed.
- Course materials can be found in the LSF.
- To take the exam, registration via the LSF is necessary.
- 3 ECTS in Modul BWL VIII (ABWL) according to BSc PO 2008 or 3 ECTS in Modul P14.2 according to BSc PO 2015