Derivatives (Coursera)

Derivatives (Coursera)

This course covers standard derivative pricing models. Both discrete time and continuous time techniques are considered. The course also includes an introduction to numerical option pricing, in particular the Monte Carlo Method.

Class Deals by MOOC List - Click here and see Coursera's Active Discounts, Deals, and Promo Codes.

After this course, students should have a good knowledge of financial markets, security pricing, arbitrage, interest rates, risk and return. Contents:
1) Definition and classification of financial assets
2) Discrete-time pricing models
3) Continuous-time pricing models
4) Fixed income products
5) Monte Carlo methods for derivative pricing
This course is part of the Financial Markets Specialization.

What you'll learn

  • Evaluate the effect of investment strategies on the risk and return of a portfolio
  • Evaluate different uses of financial derivatives (e.g., hedging, speculation)
  • Evaluate different pricing models to calculate the price of the various financial instruments
  • Develop and employ theoretical asset pricing models to price these derivative instruments

Syllabus

Financial assets
By the end of this week you will learn: fixing some notation; describe the pay-off structure of financial assets; evaluate possible usages of derivatives (hedging, speculation).

Discrete time models
By the end of this week, you will understand the replication of a payoff function, state prices and risk neutral probabilities. Additionally, you will learn how to compute option prices in discrete time models.

Continuous time models
By the end of this week, you will learn about stochastic processes and Itô's lemma, financial markets in continuous time, and option pricing in continuous time.

Pricing fixed income products: discrete time & continuous time
By the end of this week, you will learn how to compute the price of fixed income products.

Numerical methods for option pricing
At the end of this week, you will learn numerical computation of option prices.

Go to Class
MOOC List is learner-supported. When you buy through links on our site, we may earn an affiliate commission.

Related Courses

Mercados financieros (Coursera) Coursera
Yale University

Mercados financieros (Coursera)

Una síntesis de las ideas, métodos e instituciones que permiten que la sociedad humana pueda gestionar los riesgos y promover la actividad empresarial. Un énfasis en las habilidades de liderazgo con conocimientos financieros profundos. Descripción de las prácticas actuales y el análisis de prospectos a futuro. Introducción a los principios de gestión de riesgos y de las finanzas conductuales para comprender el funcionamiento en el mundo real de las industrias de valores, seguros y el sector bancario.

Jul 20th 2026
5-12 Weeks
Business Analytics for Decision Making (Coursera) Coursera
University of Colorado Boulder

Business Analytics for Decision Making (Coursera)

In this course you will learn how to create models for decision making. We will start with cluster analysis, a technique for data reduction that is very useful in market segmentation. You will then learn the basics of Monte Carlo simulation that will help you model the uncertainty that is prevalent in many business decisions.

Jul 20th 2026
4 Weeks
Calculus through Data & Modeling: Limits & Derivatives (Coursera) Coursera
Johns Hopkins University

Calculus through Data & Modeling: Limits & Derivatives (Coursera)

This first course on concepts of single variable calculus will introduce the notions of limits of a function to define the derivative of a function. In mathematics, the derivative measures the sensitivity to change of the function. For example, the derivative of the position of a moving object with respect to time is the object's velocity: this measures how quickly the position of the object changes when time advances. This fundamental notion will be applied through the modelling and analysis of data.

Jul 27th 2026
5-12 Weeks
Investment Management in an Evolving and Volatile World by HEC Paris and AXA Investment Managers (Coursera) Coursera
HEC Paris

Investment Management in an Evolving and Volatile World by HEC Paris and AXA Investment Managers (Coursera)

Have you ever wanted to invest in financial markets, but were always afraid that you didn’t have the proper tools or knowledge to make informed decisions? Have you ever wondered how investment management companies operate and what fund managers do? AXA Investment Managers, in partnership with HEC Paris, will introduce you to the most important ideas and concepts in investment management, to help you better understand your financial future.

Jul 20th 2026
4 Weeks
Understanding Financial Markets (Coursera) Coursera
University of Geneva

Understanding Financial Markets (Coursera)

In this course, you will learn what the main financial markets and their characteristics are as well as how they are linked to the economy. Our very diversified team of experts will start by teaching you how the price of stocks and bonds are computed and why they move while you will become increasingly aware of the notion of risk and why it matters when measuring an investment's performance. The focus will then move to less popular markets such as gold, emerging markets, real estate, hedge funds and private markets.

Jul 20th 2026
4 Weeks
Calculus through Data & Modeling: Differentiation Rules (Coursera) Coursera
Johns Hopkins University

Calculus through Data & Modeling: Differentiation Rules (Coursera)

Calculus through Data & Modeling: Differentiation Rules continues the study of differentiable calculus by developing new rules for finding derivatives without having to use the limit definition directly. These differentiation rules will enable the calculation of rates of change with relative ease the derivatives of polynomials, rational functions, algebraic functions, exponential and logarithmic functions, and trigonometric and inverse trigonometric functions.

Jul 27th 2026
5-12 Weeks
Financial Markets (Coursera) Coursera
Yale University

Financial Markets (Coursera)

An overview of the ideas, methods, and institutions that permit human society to manage risks and foster enterprise. Emphasis on financially-savvy leadership skills. Description of practices today and analysis of prospects for the future. Introduction to risk management and behavioral finance principles to understand the real-world functioning of securities, insurance, and banking industries. The ultimate goal of this course is using such industries effectively and towards a better society.

Aug 3rd 2026
5-12 Weeks
Riscos Financeiros (Crédito, Mercado e Liquidez) (Coursera) Coursera
FIA Business School

Riscos Financeiros (Crédito, Mercado e Liquidez) (Coursera)

Nossas boas-vindas ao Curso Riscos Financeiros (Crédito, Mercado e Liquidez). Neste curso, você aprenderá sobre conceitos associados à seleção da carteira de investimento, à análise de retorno e riscos que são utilizados na gestão de carteiras e a conceitos sobre modelos utilizados na precificação e alocação dos ativos.

Jul 27th 2026
4 Weeks
Simulation Models for Decision Making (Coursera) Coursera
University of Minnesota

Simulation Models for Decision Making (Coursera)

This course is primarily aimed at third- and fourth-year undergraduate students or graduate students interested in learning simulation techniques to solve business problems. The course will introduce you to take everyday and complex business problems that have no one correct answer due to uncertainties that exist in business environments. Simulation modeling allows us to explore various outcomes and protect personal or business interests against unwanted outcomes.

Jul 27th 2026
4 Weeks
Introduction to Spreadsheets and Models (Coursera) Coursera
University of Pennsylvania

Introduction to Spreadsheets and Models (Coursera)

The simple spreadsheet is one of the most powerful data analysis tools that exists, and it’s available to almost anyone. Major corporations and small businesses alike use spreadsheet models to determine where key measures of their success are now, and where they are likely to be in the future. But in order to get the most out of a spreadsheet, you have know how to use it. This course is designed to give you an introduction to basic spreadsheet tools and formulas so that you can begin harness the power of spreadsheets to map the data you have now and to predict the data you may have in the future.

Jul 20th 2026
4 Weeks