Assessment and Hedging of Derivative Financial Instruments

Student: Sergeev Artem

Educational Programme: Economics (Master)

Final Grade: 8

Year of Graduation: 2017

As part of this study, a detailed review of existing pricing models for derivative financial instruments was made using the example of option contracts. It was shown that the most accurate and universal of the methods considered was the method of solving initial-boundary value problems for a partial differential equation using mixed differences. Also, the mechanism of using options for risk management was demonstrated - the hedging delta strategy, which is one of the most popular among participants in financial markets.

Full text (added May 25, 2017)

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