6 ECTS credits
150 h study time

Offer 1 with catalog number 4018134FNR for all students in the 2nd semester at a (F) Master - specialised level.

Semester
2nd semester
Enrollment based on exam contract
Impossible
Grading method
Grading (scale from 0 to 20)
Can retake in second session
Yes
Taught in
English
Faculty
Faculty of Social Sciences & SolvayBusinessSchool
Department
Business
Educational team
Kris Boudt (course titular)
Steven Vanduffel
Activities and contact hours
28 contact hours Lecture
14 contact hours Seminar, Exercises or Practicals
108 contact hours Independent or External Form of Study
Course Content

1.Introduction to derivatives

  • What are derivatives
  • How can they be used
  • What are the fundamental principles of their pricing

2.Pricing of derivatives

  • Replicating portfolios
  • Risk-neutral pricing
  • Pricing in incomplete markets

3.Concepts of Behavioral  finance

  • Prospect Theory
  • Limits to arbitrage
  • Behavioral portfolio allocation
  • Behavioral corporate finance

4. Financial Data Analytics with R

  • Modelling financial returns
  • Estimation of financial risk
  • Optimization and evaluation of financial portfolios
  • Behavioral corporate finance
Additional info

Own notes and slides and Academic papers.

Teaching Methods

- Lecture: collective contact-dependent moments during which the lecturer engages with learning materials
- Seminar, Exercises or Practicals (Practical): collective or individual contact-dependent moments during which the students are guided to actively engage with learning materials
- Independent or External Form of Study (Self): independent study

This description of the teaching methods is indicative, in order to assess the expected study load.

REGULAR AND WORKING STUDENTS (same moment, daytime)

Lecture: 28 hours (8 lectures of 2 hours and 4 lectures of 3 hours)

Practical: 14 hours

  • practicums: 6 x 2 hours
  • individual feedback: 2 hours

Self: 108 hours

  • keeping up with the course material during the semester, amounting to 1 hour per hour lecture: 28 hours
  • preparing exercises, amounting to 1 hour per hour practicum: 12 hours
  • paper: 16 hours
  • solving preparatory exam questions: 4 hours
  • preparation exam: 48 hours (6 days of 8 hours)
Learning Outcomes

General competencies

Achieving a thorough knowledge of financial decision making in practice.

Gaining insight in what derivatives are, the way they can be used and their pricing. 

Learning to use R for financial data analysis. 

Grading

The final grade is composed based on the following categories:
Written Exam determines 75% of the final mark.
Practical Exam determines 25% of the final mark.

Within the Written Exam category, the following assignments need to be completed:

  • Written Exam with a relative weight of 100 which comprises 75% of the final mark.

Within the Practical Exam category, the following assignments need to be completed:

  • Practical Assignment with a relative weight of 100 which comprises 25% of the final mark.

Additional info regarding evaluation

None.

Allowed unsatisfactory mark
The supplementary Teaching and Examination Regulations of your faculty stipulate whether an allowed unsatisfactory mark for this programme unit is permitted.

Academic context

This offer is part of the following study plans:
Master of Business Economics: Standaard traject (only offered in Dutch)
Master of Teaching in Economics: standaard traject (90 ECTS, Etterbeek) (only offered in Dutch)