Derivatives and Risk Management

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The module will broaden your knowledge and understanding of the quantitative theory of financial risk, and how that risk can be managed by financial derivatives; develop critical reasoning skills in the context of financial derivatives and financial risk management; equip you with the practical skills to apply most appropriate financial derivatives to managing and hedging the financial markets volatility. When you finish the module you will be able to explain (i) the sources of financial markets risk, (ii) the key characteristics of various derivative products; (iii) the use of these products as risk management tools and understand the implications of hedging via risk-neutral replication and construct hedge portfolios, and understand pricing and hedging principles of a range of derivatives.