? Credit Points : 10  ? SCQF Level : 11  ? Acronym : MSE-P-BS0166

One of the major modern developments in finance has been the evolution of markets to trade risks. Major risk instruments, such as options, have been known for centuries but it is only in the last 30 years that the markets have developed and grown so that they can offer investors and speculators liquid instruments for transferring risk between individuals, companies and governments. Two main developments occurred; standardisation of product and an understanding of how to value the instruments. The course examines both these aspects.

? This course is not available to visting students.

? Pre-requisites : PGs Only

Home subject area

Business Studies, (Management School and Economics, Schedule H)

? Normal year taken : Postgraduate

? Delivery Period : To be arranged/Unknown

? Contact Teaching Time : 2 hour(s) 30 minutes per week for 9 weeks

To understand and appreciate the possibilities and processes for transferring risk using derivative financial instruments.After completing this course, members should:'understand the main features of options, futures and swaps and the markets in which they are traded'appreciate the role of hedging and speculation in the economy and understand basic strategies that can be employed; and' comprehend the methods by which options and futures are valued. In particular, understand Black-Scholes in terms of a dynamic hedging strategy, and the flexibility of using numerical methods

30% of the marks are awarded to the assignment70% of the marks are awarded to the final examination

The Course Secretary should be the first point of contact for all enquiries.

Course Secretary

Mrs Freda Paterson
Tel : (0131 6)50 8065
Email : f.paterson@ed.ac.uk

Course Organiser

Dr Peter Moles
Tel : (0131 6)50 3795
Email : P.Moles@ed.ac.uk

School Website : http://www.man.ed.ac.uk/

College Website : http://www.hss.ed.ac.uk/