Finance and insurance

The goal of this course is to describe the mathematical models defining the dynamics of the interest rate term structure, as well as to show the main option pricing techniques, when the underlying evolves according to either a discrete-time or a continuous time model. It also deals with credit risk and interest rates derivatives. Specific goals: - At the end of lectures students will be able to recognize, define and analyze models and pricing methods for derivatives traded in the main financial markets (interest rates, credit and equity derivatives). Moreover, they will manage to apply the theoretical framework to practical experiences. -The students who pass the exam can identify the suitable model to describe the financial structure, and also establish the most efficient methodologies to solve the related financial issues. - By using the information inferred from the lectures, students autonomously may inspect the financial context, take into account the whole range of methods to use, and interpret the obtained results. - After passing the exam (that consists of a written text with open-ended questions and/or exercises), students will be able to adequately outline the main topics covered by the lectures, either verbally or through written documents. - Standard lectures and self study enable students to develop a method to autonomously acquire new financial knowledge and theoretical\practical skills.