Course 4: Financial Engineering

The course "Financial Engineering" covers the following topics:

• Valuation across instruments and asset classes, including:
  • the standard financial engineering materials on risk-neutral valuation for derivatives (Black-Scholes, martingales, etc.)
  • non-linear actuarial pricing (distortion measures, risk premium arguments, etc.)
  • company/deal valuation, typically more tied to the investment banking and strategic consulting professions (discounted cash flows, comparable analysis, etc.)
• The connections between valuation, instrument-specific sensitivities (the "Greeks") and the different risk factors in the market
• The techniques (Monte Carlo full repricing, analytical approximations, etc.) to model the value of the different instruments at the future investment horizon, in addition to their present value.

For a detailed list of topics, refer to the Syllabus here below (expand the dropdown).

This training will help you to achieve a twofold goal:

• Goal 1: strengthen your existing knowledge of the quantitative techniques covered by the Financial Engineering for Investment course
• Goal 2: lay out the foundations to interact with a group of colleagues across geographies and departments, using a common language and notation.

You can choose to complete an optional project at the end of this course that will count as the Practical Project towards the attainment of the ARPM Certification.