Risk management and Derivatives (MSB210)
Risk Management is a key skill for finance executives. In finance practice a large number of possibilities for hedging corporate risks have been developed, such as financial futures, options, swaps, and other even more exotic instruments. This course develops the skills that allow executives to evaluate the risks a corporation is exposed to, and decide whether a corporation should hedge those risks.
Course description for study year 2025-2026. Please note that changes may occur.
Course code
MSB210
Version
2
Credits (ECTS)
10
Semester tution start
Spring
Number of semesters
1
Exam semester
Spring
Language of instruction
English
Content
Introduction to instruments and trading
Using derivatives, forwards and options
Estimating exposure
Hedging currency risk
Pricing Forwards, Options
Commodity Derivatives C
Interest rate hedging
Why do corporations hedge?
Real options
Learning outcome
Knowledge
Upon completion of the course students will gain knowledge of:
- Possible financial assets that can be used to change corporate risks.
- Pricing of financial assets, such as forwards, futures, swaps and options.
- Corporate exposure to risks.
- The role of risk management tools for hedging market risk exposure.
Skills
Upon completion of the course, students will be able to
- Price derivatives such as forwards, futures, and options.
- Estimate corporate risk exposures
- Hedge interest rate risks.
- Hedge currency risks.
Required prerequisite knowledge
Exam
| Form of assessment | Weight | Duration | Marks | Aid |
|---|---|---|---|---|
| Written exam | 1/1 | Letter grades | Valid calculator |
Further details about course requirements are given in the syllabus available at the beginning of the teaching semester.