- Docente: Giovanni Cardillo
- Credits: 6
- SSD: SECS-P/09
- Language: English
- Moduli: Giovanni Cardillo (Modulo 1) Giovanni Cardillo (Modulo 2)
- Teaching Mode: In-person learning (entirely or partially) (Modulo 1); In-person learning (entirely or partially) (Modulo 2)
- Campus: Bologna
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Corso:
Second cycle degree programme (LM) in
Greening Energy Market and Finance (cod. 5885)
Also valid for Second cycle degree programme (LM) in Quantitative Finance (cod. 6692)
Learning outcomes
On completion of the module students will be able to (a) evaluate the fundamental characteristics of major derivative instruments, (b) assess the function and impact of such instruments for corporate financing and risk management, and (c) more broadly, critically appreciate the recent research in the area of financial derivatives for investing and risk management purposes.
Course contents
The course include the following macro-topics.
- Measuring Credit Risk through ratio analysis techniques.
- Climate transition and its impact on the credit risk and firm's risk management: ESG factors and ESG Ratings.
- Term structure and fixed-income securities evaluation.
- Risk management of bond securities and their portfolio management.
- An introduction to the main derivative contracts: their mechanics, regulation, and trading mechanisms.
- Including Forwards and futures contracts in hedging strategies.
- Forward rate agreements (FRA), credit default swaps, and their pricing determinants.
- Trading and hedging strategies with options.
Readings/Bibliography
- Hull, John C. (2018) Options, Futures, and Other Derivatives, Eleventh Edition. Global Edition. Pearson-Prentice Hall.
- Booklet materials provided by the instructor will be available at the following link: "https://virtuale.unibo.it/".
Teaching methods
This course consists of 10 sessions during the 3rd subcycle of the academic year (total of 30h). The session will consist of traditional classroom-taught lesson and practitioners' guest lectures with the aim to bridge theoretical insights of the lectures with the industry practices.
Assessment methods
The 50-minute exam consists of a written quiz containing 3 open questions (3 points each) and 11 multiple-choice questions (2 points each). Both types of questions may address either theoretical concepts or practical exercises.
This is the assessment grid:
(a) <18 insufficient;
(b) 18–23 sufficient;
(c) 24–27 average/good;
(d) 28–30 very good;
(e) 30 cum laude excellent/outstanding.
The course does not include a mid-term exam but features a teamwork assignment that allows students to earn up to 3 additional points based on the quality of their joint project work.
Teaching tools
Lecture slides and additional research papers will be provided by the instructor when the course progresses. Furthermore, all the lecture slides will be provided by topic in advance.
The lecture materials is available at the following link: "https://virtuale.unibo.it/"
Links to further information
https://www.unibo.it/sitoweb/giovanni.cardillo2/avvisi
Office hours
See the website of Giovanni Cardillo