Accessibility statement

Financial Risk Management - ECO00021M

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  • Department: Economics and Related Studies
  • Credit value: 10 credits
  • Credit level: M
  • Academic year of delivery: 2022-23

Module will run

Occurrence Teaching period
A Spring Term 2022-23 to Summer Term 2022-23

Module aims

To give students an understanding of the instruments used for financial risk management in practice, based on the theory of continuous time finance and derivative pricing. Risk-neutral and forward neutral valuation. Martingales Applications: portfolio insurance; hedging basic business exposures. Departures from log normality: fat tailed distributions; behaviour in extremis. Applications: management of interest and exchange rate risk; the volatility smile ; VaR.

Module learning outcomes

 

Indicative assessment

Task % of module mark
Online Exam - 24 hrs (Centrally scheduled) 100

Special assessment rules

None

Indicative reassessment

Task % of module mark
Online Exam - 24 hrs (Centrally scheduled) 100

Module feedback

Students will receive feedback on their closed exam within the University's Policy on Assessment Feedback Turnaround Time (20 working days).  Following the release of their marks, cohort feedback will also be published on the Departmental website and student will have the opportunity to view their exam scripts at supervised Feedback Sessions.

Indicative reading

The basis of this module is provided by:

Hull, J.C., Options, Futures and other Derivatives, 7th Edition, Prentice Hall, 2008.

Supplementary reading:

Duffie, D. and Singleton, K., Credit Risk, Princeton, 2003.


The information on this page is indicative of the module that is currently on offer. The University constantly explores ways to enhance and improve its degree programmes and therefore reserves the right to make variations to the content and method of delivery of modules, and to discontinue modules, if such action is reasonably considered to be necessary. In some instances it may be appropriate for the University to notify and consult with affected students about module changes in accordance with the University's policy on the Approval of Modifications to Existing Taught Programmes of Study.