Wirtschaftswissenschaftliche Fakultät


Course Details


Corporate Finance III: Derivatives (not in 2019)

Lecturer: Diether Maack
Type: Lecture
Exam: Written exam
Term: Summer
Level: Bachelor
Limitation: None

Course not available in summer 2019. While bonds and stocks are basic securities, there are many securities derived from them. The most important so-called derivative is a financial option. This course focuses on these options and their valuation. Students will learn what financial options are and which factors affect option prices. Based on these insights, students will acquire methods to value financial options such as the Binomial Option Pricing Model and the Black Scholes formula. Students will transfer this knowledge to real options, which are rights to make particular business decisions and are tied to capital budgeting. Real options are usually not traded in competitive markets and thus do not have market prices. In order to analyze them, students will apply decision trees and will learn several rules of thumb for a quick evaluation.

For further information or application procedure please check the module manual and the website of the chair.