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FM360: Options, Futures and Other Financial Derivatives

Subject Area: Finance

Course details

  • Department
    Department of Finance
  • Application code
    SS-FM360
Dates
Session oneOpen - 23 Jun 2025 - 11 Jul 2025
Session twoNot running in 2025
Session threeNot running in 2025

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We are accepting applications. Apply early to avoid disappointment.

Overview

This course covers the concepts and models underlying the modern analysis and pricing of financial derivatives. The philosophy of the course is to first provide firm foundations for understanding derivatives in general.

The required technical tools will be explained carefully, allowing students to learn the language and to be able to converse with derivatives professionals. Once the tools are in place, those same tools can then be applied to any derivative. Special emphasis will be put on those derivatives that shape the modern world.

The first half of the course involves the review of the required tools, the setup of the pricing framework, the intuition of the methodology and the application to plain vanilla derivatives.

The second half of the course applies those techniques to more advanced topics: exotic derivatives, volatility modelling (including stochastic volatility, local volatility and volatility derivatives such as variance swaps) and interest-rate derivatives.

The pricing and hedging tools come to life in applied case studies, ranging from rogue traders bringing down major financial institutions to the recent meme stock frenzy driven by social media.

Key information

Prerequisites: Calculus and statistics at intermediate undergraduate level. 

Level: 300 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: Mid-session exam (50%), and final exam (50%)

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

Is this course right for you?

This course is suited to students wanting to build a firm and in-depth foundation for understanding derivatives, and enhance their technical skills surrounding these.

If you are targeting a career in Trading, Hedge Funds, Investment Banking or Commercial Banking then you should consider this course.

Outcomes

The underlying philosophy of the course is to first provide firm foundations for understanding derivatives in general.

Content

Jonathan Tam, Canada

The fundamentals of my course are covered at my home institution, but the summer school course gives me an extra breadth into how the industry works. It’s been a really good experience in diversifying my skill set.

Faculty

The design of this course is guided by ÐÓ°ÉÂÛ̳ faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.

Jean-Pierre Zigrand

Dr Jean-Pierre Zigrand

Associate Professor of Finance; Director, Systemic Risk Centre

Rohit Rahi

Dr Rohit Rahi

Associate Professor of Finance

Department

The ÐÓ°ÉÂÛ̳ Department of Finance is devoted to excellence in teaching and research in the full range of the subfields of finance including corporate finance, asset pricing theory, risk management, empirical analysis of capital markets, behavioural finance, portfolio analysis, derivatives pricing, microstructure and financial econometrics.

The Department of Finance (formerly part of the Department of Accounting and Finance) has grown in recent years to become one of the largest and most highly-regarded finance groups in the UK and Europe. It is closely associated with the ÐÓ°ÉÂÛ̳'s Financial Markets Group and Systemic Risk Centre which regularly host a wide variety of seminars, conferences and public addresses by leading academics and practitioners.

With over 200 post-graduate students selected from a pool of top applicants world-wide, a faculty recruited from the top departments internationally, and a steady flow of distinguished visitors, we have a stimulating environment for research and learning that is on par with the best in the world.

Apply

Applications are open

We are accepting applications. Apply early to avoid disappointment.