Email Address:

Phone Number:

Financial Modelling and Derivatives- Period 4 Honors Program Program Spring 2025 Semester - Extended - Amsterdam

Flight Credit Get a Flight Credit worth up to $1,250 when you apply with code* by June 30, 2024

Financial Modelling and Derivatives- Period 4

Financial Modelling and Derivatives- Period 4 Course Overview


CEA CAPA Partner Institution: Vrije Universiteit Amsterdam
Location: Amsterdam, Netherlands
Primary Subject Area: Finance
Instruction in: English
Course Code: E_IBK3_FMD
Transcript Source: Partner Institution
Course Details: Level 300
Recommended Semester Credits: 3
Contact Hours: 84
Prerequisites: Finance I and Quantitative Research Methods I and II.


Central topics in financial modeling that will be discussed are:
- measures of risk in financial markets: variance and volatility of returns;
- trade-off between risk and return;
- estimation of average return and volatility;
- concepts of covariance and correlation; their estimation;
- risk and return of portfolios;
- diversification;
- universal risk measures: Value-at-Risk and Expected Shortfall;
- concept of efficient portfolio. Markowitz model;
- risk premium and beta;
- multifactor models of risk.

Central topics in the part on derivatives that will be discussed are:
- types and characteristics of financial derivatives;
- use of derivatives in risk hedging;
- options: determining option price with the help of the binomial tree;
- sensitivities of options (Greeks);
- Black-Scholes model for option pricing and its assumptions;
- delta hedging of options;
- implied volatilities and volatility smiles;

Contact hours listed under a course description may vary due to the combination of lecture-based and independent work required for each course therefore, CEA's recommended credits are based on the ECTS credits assigned by VU Amsterdam. 1 ECTS equals 28 contact hours assigned by VU Amsterdam.

Receive a $1,250 Flight Credit when you apply by June 30, 2024

Get your flight credit code and access to Passbook in two easy steps. With Passbook, you can track your favorite programs and courses, save flight credits, and watch videos on the destination you're interested in.

Apply Now

Step 1 of 2

Step 2 of 2

*By providing your mobile number, you agree to receive recurring text messages from CEA CAPA Education Abroad notifying you of important program deadlines. Message and data rates may apply.

Privacy Policy   |   Mobile Terms   |   Flight Credit Rules

Your flight credit has been added to your Passbook. Apply now or view your Passbook to begin the next step in your journey.