The course "Risk Management" replaces the previous course of "ABWL Finanzierung". Please find details here.
Lecturer: Prof. Glaser
Contact Person: Philipp Kiergaßner
Weekly hours: 2
Credits: PO 2008: 3 ECTS in Module BWL VII (ABWL); PO 2015: 3 ECTS in Module P14.2 as part of Module "Accounting & Finance"
This course presents and analyses financial options, such as American options and European options. Students will learn how to valuate options using the binomial option pricing technique as well as the Black-Scholes option pricing formula. Risk-neutral probabilities will be introduced. This course also discusses insurance, risks related to commodity prices, exchange rates as well as interest rates, and studies how to manage/hedge such risks. The efficient portfolio choice and the Capital Asset Pricing Model will be recapped at the beginning of the course.
The main textbook for the course is Berk/DeMarzo: “Corporate Finance”, 4rd ed., 2016 (earlier editions can be used as well).