Risk management and Derivatives (MSB210)

Risk Management is a key skill for finance executives. In finance practice a large numbers 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 allows executives to evaluate the risks a corporation is exposed to, and decide whether a corporation should hedge those risks.


Course description for study year 2024-2025

Facts

Course code

MSB210

Version

2

Credits (ECTS)

10

Semester tution start

Spring

Number of semesters

1

Exam semester

Spring

Language of instruction

English

Offered by
Time table

View course schedule

Content

Introduction to instruments and trading

Using derivatives, forwards and options

Estimating exposure

Hedging currency risk

Pricing Forwards, Options

Commodity Derivatives C

Corporate Derivatives: Convertible debt, Warrants, Executive compensation

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, swaps and options.
  • Estimate corporate risk exposures
  • Hedge interest rate risks.
  • Hedge currency risks.

Required prerequisite knowledge

MSB309 Corporate Finance

Exam

Form of assessment Weight Duration Marks Aid
Written exam 1/1 Letter grades

Further details about course requirements are given in the syllabus available at the beginning of the teaching semester.

Coursework requirements

Handins of problem sets

Course teacher(s)

Course coordinator:

Bernt Arne Ødegaard

Study Program Director:

Yuko Onozaka

Open for

Industrial Economics - Master of Science Degree Programme Master of Science in Accounting and Auditing Business Administration - Master of Science
Exchange programmes at UIS Business School

Course assessment

There must be an early dialogue between the course supervisor, the student union representative and the students. The purpose is feedback from the students for changes and adjustments in the course for the current semester.In addition, a digital subject evaluation must be carried out at least every three years. Its purpose is to gather the students experiences with the course.

Literature

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