The world's most flexible MBA programme
This is your MBA. Not ours. That means you start when you like and finish when you like. You can study from home or on campus. At EBS, our courses are designed to fit round you.
One of the world's largest MBA programmes
Edinburgh Business School is one of the world's pre-eminent business schools. We have more than 10,900 active students. More than 15,500 alumni. And partners across seven continents.
One of the world's most innovative business schools
Our rigorous courses can be studied in any order. You take exams when you're ready. At Edinburgh Business School, we take a different view. Come and see for yourself.
Some of the most talented students – and teachers – in the business world
We have students from more than 40% of Fortune 500 companies. Our courses are written by prize-winning business authors. For more than 20 years, our programmes have challenged, inspired – and rewarded.
Derivatives are key instruments for firms to transfer and mitigate their risks. The major classes are forward contracts, futures, options and swaps. According to Robert Merton, risk management is one of the key functions of the financial system and also one of the analytical pillars of finance. The theory of option pricing is one of the key ideas in finance for which Myron Scholes and Robert Merton were awarded their Nobel Prize.
The Black-Scholes-Merton option-pricing model has been described as 'the workhorse of the financial services industry'. Understanding derivative pricing is important for financial engineers seeking to address financial problems. Derivatives are important instruments for firms to manage risk. Financial futures are one of the most heavily traded markets in the world. Swaps are among the newest risk management products. Option markets expanded following the introduction of the Black-Scholes model.
- The derivatives building blocks.
- Terminal instruments.
- Forward contracts.
- The basics of options.
- Option pricing.
- The Black–Scholes option-pricing model.
- 'The Greeks of option pricing'.
- Extensions to the basic option-pricing model.
- Using derivatives and hedging.
- Hedging and insurance.
- Using the derivatives product set.