FINANCIAL ENGINEERING - Basic

Financial Engineering is the buzz word of the modern times involving design of financial products and bringing in more innovation into the Financial World. Derivatives play a key role in Financial Engineering, so is the importance of Mathematics and Statistics. The objective of this course is to introduce you to the basic mathematics behind Financial Engineering and also to some of the important conceptual aspects of Financial Engineering. This course can be a good starting point for you to get into various Financial Engineering programs across the world

LEARNING OBJECTIVES

➣Get a good Understanding of Financial Mathematics

➣Introduces you to some aspects of Quantitative Finance especially the calculus

➣Needs of main users of Financial Information

➣Derivatives pricing and Arbitrage free valuation are the focal points

➣Integrating mathematics with the world of Finance to create innovative products

➣Essential concepts like Put call parity, Duration and Convexity, Black Scholes, Risk Neutral Pricing, Greeks based hedging become more familiar after this course

COURSE OUTLINE

There are four broader areas covered as a part of the Financial Engineering - Basic training offered by P.A.C.E gurus

'Understanding of different mathematical concepts needed for Financial Engineering

'Understanding different numerical methods based solutions

'Usage of Computational Finance Concepts in Financial Derivatives Pricing and Trading

'Other applications with respect to Bond markets and others

COURSE HIGHLIGHTS

Here the focus is more on Mathematical Finance.

course curriculum

Basics of Mathematics Overview of Calculus Improper Integrals Numerical Methods for Integration
Probability Lognormal Variables Taylor Formula and Series Finite Differences
Numerical solution - Oridinary Differential Equations Multi variable Calculus Lagrange Multipliers Numerical Methods - Solving Equations
European Call and Put Options Arbitrage Free Pricing Call Put Parity Interest rate curves
Bond Pricing Duration and Convexity Numerical Implementation Black Scholes Formula
Greeks and Hedging Implied Volatility Risk Neutral Pricing Black Scholes PDE
Barrier Options Optimal Investment Portfolios Box Muller Method Boot Strapping

WHO CAN ATTEND

An MBA in Finance or any Finance Professional who is aspiring to take up challenging opportunities in Financial Engineering or looking to enter into Full fledged Financial Engineering programs of reputed universities across the world can find this course as a good starting point for brushing up the mathematics as well as get a brief update of the applications of Quantitative Methods in Finance. Even if you are an Engineer or have passion for Mathematics with an objective to move to Finance, this is an apt platform for you to Understand Financial applications.

PRE REQUISITES

You should have a basic Finance Degree or MBA Finance or any other certificate in Finance with some Understanding of Derivatives and Bonds.

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