Unit I: Foundations

1. Introduction to Financial Engineering
2. Basics of Probability
3. Probability Distributions
4. Stochastic Models
5. Monte Carlo Techniques

Unit II: Financial Markets & Instruments

1. Overview of Financial Markets
2. Market Players and Conventions
3. International Monetary System
4. Foreign Exchange Markets
5. Introduction to Derivatives
6. Security Valuation Approaches
7. Probability Forecasting

Unit III: Asset Pricing Models

1. Capital Asset Pricing Model (CAPM)
2. Security Market Line
3. Arbitrage Pricing Theory (APT)
4. Single & Multiple Factor Models
5. Estimating Factor Models
6. Asset and Liability Case Study

Unit IV: Engineering Financial Products

1. Cash Flow Engineering & Forward Contracts
2. Interest Rate Derivatives
3. Swap Engineering
4. Repo Market Strategy
5. Replication Methods & Synthesis
6. Option Mechanics
7. Black-Scholes Model
8. Convexity Position Engineering
9. Binomial Option Pricing Models

Unit V: Advanced Topics & Applications

1. Engineering of Fixed Income Securities
2. Credit Derivatives
3. Equity Instruments Engineering
4. Pricing and Replication of Equity Instruments
5. Market Volatility Engineering
6. Case Studies on Derivatives Losses
7. Synthetic Instruments & Taxation Strategies

Unit VI: Theory to Practice

• Using BeQ Platforms