Course - Financial Engineering

CCPI > Course – Financial Engineering

Course - Financial Engineering

Innovate, Optimize, Trade: Master the Mechanics of Modern Finance

The course “Financial Engineering” introduces students to the design, analysis, and implementation of innovative financial instruments and strategies. It combines concepts from finance, mathematics, statistics, and computational methods to solve complex problems in investment, risk management, and market analysis. Topics include derivatives pricing, portfolio optimization, risk modeling, structured products, and algorithmic trading.

By integrating theoretical knowledge with hands-on applications, this course equips learners with the skills to develop and evaluate sophisticated financial solutions tailored to real-world market challenges.

Unit I: Foundations

Introduction to Financial Engineering
Basics of Probability
Probability Distributions
Stochastic Models
Monte Carlo Techniques

Unit II: Financial Markets & Instruments

Overview of Financial Markets
Market Players and Conventions
International Monetary System
Foreign Exchange Markets
Introduction to Derivatives
Security Valuation Approaches
Probability Forecasting

Unit III: Asset Pricing Models

Capital Asset Pricing Model (CAPM)
Security Market Line
Arbitrage Pricing Theory (APT)
Single & Multiple Factor Models
Estimating Factor Models
Asset and Liability Case Study

Unit IV: Engineering Financial Products

Cash Flow Engineering & Forward Contracts
Interest Rate Derivatives
Swap Engineering
Repo Market Strategy
Replication Methods & Synthesis
Option Mechanics
Black-Scholes Model
Convexity Position Engineering
Binomial Option Pricing Models

Unit V: Advanced Topics & Applications

Engineering of Fixed Income Securities
Credit Derivatives
Equity Instruments Engineering
Pricing and Replication of Equity Instruments
Market Volatility Engineering
Case Studies on Derivatives Losses
Synthetic Instruments & Taxation Strategies

Unit VI: Theory to Practice

Using BeQ Platforms