Financial Engineering is a multidisciplinary field drawing from finance and economics, mathematics, statistics, engineering and computational methods. The emphasis of FE & RM Part I will be on the use of simple stochastic models to price derivative securities in various asset classes including equities, fixed income, credit and mortgage-backed securities. We will also consider the role that some of these asset classes played during the financial crisis. A notable feature of this course will be an interview module with Emanuel Derman, the renowned ``quant'' and best-selling author of "My Life as a Quant".
Offered By
Financial Engineering and Risk Management Part I
Columbia UniversityAbout this Course
166,917 recent views
Learner Career Outcomes
40%
started a new career after completing these courses
38%
got a tangible career benefit from this course
Shareable Certificate
Earn a Certificate upon completion
100% online
Start instantly and learn at your own schedule.
Flexible deadlines
Reset deadlines in accordance to your schedule.
Approx. 18 hours to complete
English
Subtitles: English
Skills you will gain
PricingFinancial ModelingFinancial RiskFinancial Engineering
Learner Career Outcomes
40%
started a new career after completing these courses
38%
got a tangible career benefit from this course
Shareable Certificate
Earn a Certificate upon completion
100% online
Start instantly and learn at your own schedule.
Flexible deadlines
Reset deadlines in accordance to your schedule.
Approx. 18 hours to complete
English
Subtitles: English
Offered by
Columbia University
For more than 250 years, Columbia has been a leader in higher education in the nation and around the world. At the core of our wide range of academic inquiry is the commitment to attract and engage the best minds in pursuit of greater human understanding, pioneering new discoveries and service to society.
Syllabus - What you will learn from this course
29 minutes to complete
Course Overview
An introduction to the course.
29 minutes to complete
1 video (Total 9 min), 2 readings
1 video
2 readings
Course Overview10m
About Us10m
2 hours to complete
Introduction to Basic Fixed Income Securities
Review of interest and basic fixed income securities; introduction to arbitrage pricing.
2 hours to complete
4 videos (Total 70 min), 2 readings, 1 quiz
4 videos
Interest Rates and Fixed Income Instruments21m
Floating Rate Bonds and Term Structure of Interest Rates21m
Forward Contracts13m
2 readings
Lesson Supplements10m
Lesson Supplements10m
1 practice exercise
Introduction to Basic Fixed Income Securities30m
2 hours to complete
Introduction to Derivative Securities
The mechanics of forwards, futures, swaps and options. Option pricing in the 1-period binomial model.
2 hours to complete
7 videos (Total 99 min), 2 readings, 1 quiz
7 videos
Swaps10m
Futures 17m
Futures Excel7m
Options17m
Options Pricing13m
The 1-Period Binomial Model12m
Option Pricing in the 1-Period Binomial Model20m
2 readings
Lesson Supplements10m
Lesson Supplements10m
1 practice exercise
Introduction to Derivative Securities30m
2 hours to complete
Option Pricing in the Multi-Period Binomial Model
Derivatives pricing in the binomial model including European and American options; handling dividends; pricing forwards and futures; convergence of the binomial model to Black-Scholes.
2 hours to complete
8 videos (Total 95 min), 2 readings, 1 quiz
8 videos
What’s Going On?12m
Pricing American Options11m
Replicating Strategies16m
Including Dividends8m
Pricing Forwards and Futures in the Binomial Model11m
The Black-Scholes Model11m
An Example: Pricing a European Put on a Futures Contract6m
2 readings
Lesson Supplements10m
Quiz Instructions10m
1 practice exercise
Option Pricing in the Multi-Period Binomial Model30m
Reviews
TOP REVIEWS FROM FINANCIAL ENGINEERING AND RISK MANAGEMENT PART I
by DPMar 8, 2020
I have an engineering / numerics background and enjoyed this course very much. Good overview and comprehensive explanation of mathematical models of fixed income and equities as well as derivatives.
by MMJul 11, 2017
I appreciate how this course not only discusses the concepts in technical detail, but actually delves into the mathematics of the subject matter, and teaches how to actually do the actual work inv
by JDDec 9, 2015
Very well presented, structured and selected material, easy to follow, relevant and interesting. Quizz problems are well thought through and have a reasonable degree of difficulty and length.
by AZJul 17, 2020
A very well designed course! I knew some topics prior to the course and it helped me to strengthen my knowledge on derivative market systematically, particularly on interest rate derivatives
Frequently Asked Questions
When will I have access to the lectures and assignments?
Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:
- The course may not offer an audit option. You can try a Free Trial instead, or apply for Financial Aid.
- The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.
What will I get if I purchase the Certificate?
When you purchase a Certificate you get access to all course materials, including graded assignments. Upon completing the course, your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
Is financial aid available?
Yes, Coursera provides financial aid to learners who cannot afford the fee. Apply for it by clicking on the Financial Aid link beneath the "Enroll" button on the left. You’ll be prompted to complete an application and will be notified if you are approved. Learn more.
More questions? Visit the Learner Help Center.
