Introduction Chapter 1 Financial Engineering
Financial Engineering
Xingguo Luo http://mypage.zju.edu.cn/xingguo
College of Economics and Academy of Financial Research Zhejiang University (ZJU)
Chapter 1: Introduction
Lecture 1: Feb 28, 2013
Xingguo Luo (ZJU)
Financial Engineering (2013)
Lecture 1: Feb 28, 2013
1 / 45
Outline
Outline
Course Introduction
◮ ◮ ◮ ◮
Course description Learning outcomes Candidate topics Assessment A unique instrument A money market problem A taxation example Trading volatility
Introduction
◮ ◮ ◮ ◮
Xingguo Luo (ZJU)
Financial Engineering (2013)
Lecture 1: Feb 28, 2013
2 / 45
Course introduction
Course description
This is one of elective courses for undergraduate students The course introduces methods that use financial instruments and financial engineering strategies in solving practical problems The engineering dimension of the topics under consideration is emphasized. Simple graphs and elementary mathematics are employed The course does not discuss the details of financial instruments and its pricing The purpose of this course is to help students find their interests and to provide insights for them to learn more advanced topics or work in financial industry
Xingguo Luo (ZJU)
Financial Engineering (2013)
Lecture 1: Feb 28, 2013
3 / 45
Course introduction
Course learning outcomes
Understand popular financial instruments from conceptual and engineering perspectives Be able to analyze features of practical financial instruments Develop skills in designing financial products
Xingguo Luo (ZJU)
Financial Engineering (2013)
Lecture 1: Feb 28, 2013
4 / 45
Course introduction
Candidate topics
Forward contracts Cash flow engineering Swap engineering Repo Synthetics Options Fixed-income engineering Volatility trading CDS Structured product engineering
Xingguo Luo (ZJU)
Financial Engineering (2013)
Lecture 1: Feb 28, 2013
5 / 45
Course introduction
Assessment
Individual class
Xingguo Luo http://mypage.zju.edu.cn/xingguo
College of Economics and Academy of Financial Research Zhejiang University (ZJU)
Chapter 1: Introduction
Lecture 1: Feb 28, 2013
Xingguo Luo (ZJU)
Financial Engineering (2013)
Lecture 1: Feb 28, 2013
1 / 45
Outline
Outline
Course Introduction
◮ ◮ ◮ ◮
Course description Learning outcomes Candidate topics Assessment A unique instrument A money market problem A taxation example Trading volatility
Introduction
◮ ◮ ◮ ◮
Xingguo Luo (ZJU)
Financial Engineering (2013)
Lecture 1: Feb 28, 2013
2 / 45
Course introduction
Course description
This is one of elective courses for undergraduate students The course introduces methods that use financial instruments and financial engineering strategies in solving practical problems The engineering dimension of the topics under consideration is emphasized. Simple graphs and elementary mathematics are employed The course does not discuss the details of financial instruments and its pricing The purpose of this course is to help students find their interests and to provide insights for them to learn more advanced topics or work in financial industry
Xingguo Luo (ZJU)
Financial Engineering (2013)
Lecture 1: Feb 28, 2013
3 / 45
Course introduction
Course learning outcomes
Understand popular financial instruments from conceptual and engineering perspectives Be able to analyze features of practical financial instruments Develop skills in designing financial products
Xingguo Luo (ZJU)
Financial Engineering (2013)
Lecture 1: Feb 28, 2013
4 / 45
Course introduction
Candidate topics
Forward contracts Cash flow engineering Swap engineering Repo Synthetics Options Fixed-income engineering Volatility trading CDS Structured product engineering
Xingguo Luo (ZJU)
Financial Engineering (2013)
Lecture 1: Feb 28, 2013
5 / 45
Course introduction
Assessment
Individual class