The Introduction to Financial Engineering and Risk Management course is part of the Financial Engineering and Risk Management Specialization. It provides an introduction to fixed-income securities, derivatives and their respective pricing models. This module provides an overview of the basic concepts and rules for optimization and probability. This module will provide the foundations of mathematics for the course. The second module covers concepts related to fixed income securities and derivatives. In the second module, we will discuss the term structure of interest rates and present value (PV), computation for fixed income securities in an arbitration-free setting. The third module will teach you how to price options and swaps using the Binomial Model. The final module will focus on option pricing in multi-period settings using the Binomial or Black-Scholes Models. The multi-period Binomial Model with American Options, Futures and Forwards will be shown next.
