wir843 - Financial Risk Management (Veranstaltungsübersicht)

Typically at the end of the lecture period. Potential mid-term examination dates will be announced in the first session.

Typically, a written exam (Klausur, with a duration of 90 minutes). Alternative types of exams, such as a portfolio (consisting of 2-3 parts), a term paper (Hausarbeit, with a lenght of about 15-20 pages), or an oral exam (mündliche Prüfung, with a duration of about 30 min.) are possible at the lecturer's discretion. The type of examination will be announced in the first session. 

The aim of the course is to provide students with a thorough knowledge of how to identify, classify, measure, and manage different types of financial business risks. In particular, we will discuss the properties and potential applications of derivatives in financial risk management. Upon completion of this module students 

• will have a sound understanding of the concept of risk management, and will be able to distinguish different types of financial risks and risk management approaches; 

• will be able to devise hedging strategies, arbitrage strategies, and speculative strategies using financial derivatives such as futures contracts, forward contracts, options, and swaps; 

• will be able to consistently apply valuation models to determine theoretical prices of financial derivatives. 

• will be able to assess limitations of financial derivatives in risk management.