Örebro University School of Business

Course Syllabus

General aims for second cycle education

Second-cycle courses and study programmes shall involve the acquisition of specialist knowledge, competence and skills in relation to first-cycle courses and study programmes, and in addition to the requirements for first-cycle courses and study programmes shall
- further develop the ability of students to integrate and make autonomous use of their knowledge
- develop the students' ability to deal with complex phenomena, issues and situations, and
- develop the students' potential for professional activities that demand considerable autonomy, or for research and development work.

(Higher Education Act, Chapter 1, Section 9)

After completing the course, students should be able to:
- The price of different types of derivatives with analytical formulas and simulation
- Evaluate empirical research evidence and relate to practical limitations
- Describe and evaluate the use of derivatives for risk management
- Describe and compare the methods of how issuers can protect themselves against their risk exposure.

The course covers models for interest rates and the term structure, pricing of futures, forwards and swap contracts, numerical option pricing models, stochastic processes and simulation, stochastic calculus and derivations of pricing formulas for options and general derivatives contracts. The course also covers the use of derivatives to hedge risks and real options.

Teaching is done in the form of lectures and exercises.

Students who have been admitted to and registered on a course have the right to receive tuition and/or supervision for the duration of the time period specified for the particular course to which they were accepted (see, the university's admission regulations (in Swedish)). After that, the right to receive tuition and/or supervision expires.

For further information, see the university's local examination regulations (in Swedish).

According to the Higher Education Ordinance, Chapter 6, Section 18, a grade is to be awarded on the completion of a course, unless otherwise prescribed by the university. The university may prescribe which grading system shall apply. The grade is to be determined by a teacher specifically appointed by the university (an examiner).

According to regulations on grading systems for first- and second-cycle education (vice-chancellor's decision 2010-10-19, reg. no. CF 12-540/2010), one of the following grades is to be used: fail, pass, or pass with distinction. The vice-chancellor or a person appointed by the vice-chancellor may decide on exceptions from this provision for a specific course, if there are special reasons.

Grades used on course are Fail (U), Pass (G) or Pass with Distinction (VG).

Final grade
Grades used on course are Fail (U), Pass (G) or Pass with Distinction (VG). To receive a Pass (G) for the course, the student must pass the written examination and pass the assignment. To receive a Pass with Distinction for the course, the student must achieve a Pass with Distinction in the written examination and pass the assignment.

For further information, see the university's local examination regulations (in Swedish).

Corporate Finance, 7,5 credits, second cycle, and Financial Economics and Ethics, 7,5 credits, second cycle, as well as Statistics, Basic Course, 30 credits, Economics, Basic Course, 30 credits and Business Administration, 30 credits, Basic Course. The applicant must also have qualifications corresponding to the course "English 6" or "English B" from the Swedish Upper Secondary School.

For further information, see the university's admission regulations (in Swedish).

Students who have previously completed higher education or other activities are, in accordance with the Higher Education Ordinance, entitled to have these credited towards the current programme, providing that the previous studies or activities meet certain criteria.

For further information, see the university's local credit transfer regulations (in Swedish).

Required Reading

Vetenskapliga artiklar, lektionsmaterial och övningar, sammantaget 300 sidor.
Delar av kursen refererar till:
Robert L. McDonald: Derivatives Markets, Pearson, senaste upplagan.

Scientific articles, lecture materials and exercises, in total 300 pages.
Parts of the course refer to:
Robert L. McDonald: Derivatives Markets, Pearson, latest edition.

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