Derivatives are key instruments for firms to transfer and mitigate their risks. The major classes are forward contracts, futures, options and swaps. According to Robert Merton, risk management is one of the key functions of the financial system and also one of the analytical pillars of finance. The theory of option pricing is one of the key ideas in finance for which Myron Scholes and Robert Merton were awarded their Nobel Prize.

The Black-Scholes-Merton option-pricing model has been described as 'the workhorse of the financial services industry'. Understanding derivative pricing is important for financial engineers seeking to address financial problems. Derivatives are important instruments for firms to manage risk. Financial futures are one of the most heavily traded markets in the world. Swaps are among the newest risk management products. Option markets expanded following the introduction of the Black-Scholes model.

Topics covered

  • The derivatives building blocks.
  • Terminal instruments.
  • Forward contracts.
  • Futures.
  • Swaps.
  • The basics of options.
  • Option pricing.
  • The Black–Scholes option-pricing model.
  • ‘The Greeks of option pricing’.
  • Extensions to the basic option-pricing model.
  • Using derivatives and hedging.
  • Hedging and insurance.
  • Using the derivatives product set.
  • You read on distance and can take the exam at another location in the world.
  • You will receive an international certificate from one of the world's leading universities.
  • You get a solid material.
  • You get strong support through the web.
  • You turn knowledge directly into “business in practice”.
  • You get academic credits and the benefit of the wider international studies (MBA, MSc and DBA).



MBA education has been very stimulating and gave me the tools to apply the knowledge practically in the workplace. The flexibility to learn on distance fits perfectly with a job that involves lots of travelling.

Marie Lobéus, MBA, CFO, Hoist Technology AB


This training has far exceeded my expectations. Hugely inspirational speakers, good material, combined with a demanding level of education means that I can really recommend this MBA.

Henrik Jonsson, MBA Commercial Manager The Phone Hourse AB


More references...

+46 8-544 715 70


Manager and key persons


Level 7 (according to the EU framework)


About 200 hours. You will receive an international certificate from one of the world's leading universities, Heriot-Watt University. 10 ECTS (European Credit Transfer System) Credits.

Entry condition

Bachelor degree or equivalent.


Distance learning starts individually.

  • SEK 13.000 excl VAT.
  • Examination fee is not included.