Financial Engineering has assumed a lot of significance in the recent years. The primary purpose of financial engineering is
i) the introduction of innovative financial products in tune with the expectations of the investors and
ii) reduction of risk that might arise in various speculative transactions.
This module familiarises students with the practical uses of derivatives in speculation, hedging and arbitrage; students will also analyse the various techniques used in financial engineering. The module also aims to demonstrate the various methods used to evaluate the changing market and credit risk of global financial institutions.