19504 - Life Insurance and Asset Management

Academic Year 2011/2012

  • Teaching Mode: In-person learning (entirely or partially)
  • Campus: Rimini
  • Corso: First cycle degree programme (L) in FINANCE, INSURANCE AND BUSINESS (cod. 8053)

Learning outcomes

At the end of the course the student knows the main features of the financial and insurance product and the nature and use of derivative contracts in the market of structured products in finance and insurance. In particular the student is able to - use the decision making techniques for investment and asset allocation - evaluate the choices available in the industry of the managed funds - apply the techniques of performance evaluation and style analysis to managed funds.

Course contents

1. Introduction to financial products and the concept of arbitrage-free valuation

2. Fixed income market: fixed and floating rate notes

3. Swap contracts and cash flow management techniques

4. Techniques for term structure analysis: bootstrap method

5. Introduction to derivative contracts: forward and futures

6. Non linear derivatives: options

7. Introduction to stochastic calculus and the Black and Scholes model

8. Sensitivity analysis of options: Greek letter analysis

9. Interest rate derivatives: caps, floors and swaptions

10. Utility theory and investment choice 

11. Separation fund theorem and the managed fund market

12. Hedge funds and alternative investments

Readings/Bibliography

U. Cherubini - G. Della Lunga: Matematica Finanziaria, Mc Graw Hill Italia, 2001

J. Hull Opzioni, futures e altri derivati

S. Benninga, Modelli finanziari: La finanza con Excel, McGraw-Hill Italia, 2010

Teaching methods

Lectures and lab exercizes

Assessment methods

Lab test and written exam (questionnaire)

Teaching tools

Lab exercizes

Office hours

See the website of Umberto Cherubini