Universität Wien

040646 VK KFK IV: Implementing Derivative Models (2010W)

8.00 ECTS (4.00 SWS), SPL 4 - Wirtschaftswissenschaften
Prüfungsimmanente Lehrveranstaltung

An/Abmeldung

Hinweis: Ihr Anmeldezeitpunkt innerhalb der Frist hat keine Auswirkungen auf die Platzvergabe (kein "first come, first served").

Details

max. 50 Teilnehmer*innen
Sprache: Englisch

Lehrende

Termine (iCal) - nächster Termin ist mit N markiert

  • Samstag 06.11. 09:00 - 13:00 EDV-Labor 6
  • Samstag 06.11. 14:00 - 17:00 EDV-Labor 6
  • Samstag 20.11. 09:00 - 13:00 EDV-Labor 6
  • Samstag 20.11. 14:00 - 17:00 EDV-Labor 6
  • Samstag 27.11. 09:00 - 13:00 EDV-Labor 6
  • Samstag 27.11. 14:00 - 17:00 EDV-Labor 6
  • Samstag 11.12. 09:00 - 13:00 EDV-Labor 6
  • Samstag 11.12. 14:00 - 17:00 EDV-Labor 6
  • Samstag 18.12. 09:00 - 13:00 EDV-Labor 6
  • Samstag 18.12. 14:00 - 17:00 EDV-Labor 6
  • Samstag 29.01. 09:00 - 13:00 EDV-Labor 6

Information

Ziele, Inhalte und Methode der Lehrveranstaltung


  • Monte Carlo simulation

    • Variance reduction: antithetic variables, control variates, importance sampling

    • Random number generation



  • Lattice methods

    • Binomial

    • Trinomial



  • Finite difference methods

    • Explicit finite differences

    • Implicit finite differences

    • Crank-Nicolson method



  • Implied trees

  • Interest rate models

    • Black-Derman-Toy

    • Hull and White




Art der Leistungskontrolle und erlaubte Hilfsmittel

Homework assignments (50 %) and final test (50 %).

Mindestanforderungen und Beurteilungsmaßstab

This course will give an understanding of numerical methods for practically dealing with two fundamental concepts - stochastic processes and partial differential equations - for modelling derivative financial products. Numerical techniques are essential in many cases of (exotic) instruments where analytical formulas do not exist.

Target group: Students of finance interested in computational aspects of derivatives pricing as well as students of computer science and business informatics interested in financial applications.
Numerical methods will be implemented in Visual Basic (participants are free to use a different programming language, such as C, Java, Fortran, Pascal).

Prüfungsstoff

Participants will learn how to implement these methods through writing computer programs in a high level programming language (Visual Basic), and to apply them for the calculation of prices of derivative instruments.

Literatur

* S. Benninga. Financial Modeling. MIT-Press, 2008.
* L. Clewlow and C. Strickland. Implementing Derivatives Models. Wiley, 1998.
* P. Glasserman. Monte Carlo Methods in Financial Engineering. Springer, 2004.
* J.C. Hull. Options, Futures, and other Derivatives. Prentice Hall, 2008.
* P. G. Zhang. Exotic Options: A Guide to Second Generation Options (2nd Edition). World Scientific, 2006.

Zuordnung im Vorlesungsverzeichnis

Letzte Änderung: Mo 07.09.2020 15:29