Financial Engineering Fundamentals

Introduction

The Financial Engineering Fundamentals course is designed to provide participants with a comprehensive understanding of the principles and practices of financial engineering. This course will explore the key concepts and techniques used in the field, equipping participants with the knowledge and skills necessary to analyze and solve complex financial problems. Whether you are a finance professional seeking to enhance your expertise or an individual interested in pursuing a career in financial engineering, this course will provide you with a solid foundation in the subject.

Objectives

• Understand the key principles and concepts of financial engineering.
• Gain proficiency in applying quantitative techniques to financial problem-solving.
• Learn how to analyze and manage financial risk using various mathematical models.
• Acquire knowledge of derivative instruments and their applications in financial markets.
• Develop the skills to design and implement financial engineering strategies.

Course Outline

Day 1

 Introduction to Financial Engineering

• Definition and scope of financial engineering
• Historical overview and evolution of the field
• Role of financial engineering in modern finance
• Regulatory framework and ethical considerations

Day 2

 Quantitative Techniques in Financial Engineering

• Time value of money and discounting principles
• Probability theory and statistical concepts
• Mathematical modeling in finance
• Analysis of financial time series data

Day 3

Financial Risk Management

• Introduction to financial risk and risk management
• Value at Risk (VaR) modeling and analysis
• Portfolio risk assessment and diversification
• Credit risk modeling and default probabilities

Day 4

 Derivative Instruments and Markets

• Overview of derivative instruments: futures, options, swaps
• Pricing and valuation of derivatives
• Hedging strategies using derivatives
• Derivatives in risk management and trading

Day 5

 Financial Engineering Applications

• Structured finance and securitization
• Financial engineering in investment banking
• Designing and implementing trading strategies
• Case studies and practical applications