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Learning Pathway

Financial Modeling

Price derivatives and model risk the way quant desks actually do it.

About this pathway

Financial Modeling goes deep on the quantitative models that underpin modern derivatives trading and risk management. From Black-Scholes to volatility surfaces, you will learn to build, critique, and extend the models used at hedge funds and investment banks.

Who it's for

Aspiring quant traders, structurers, and researchers. Especially valuable for those targeting derivatives desks, volatility trading, or systematic macro strategies.

Skills covered

Black-Scholes model & derivation
Greeks: delta, gamma, vega, theta, rho
Volatility surfaces & smile modeling
Interest rate models (Vasicek, HJM)
Exotic options & path-dependent products
Risk management & VaR frameworks

Course modules

01
Options Fundamentals & Put-Call Parity
5 lessons
02
Black-Scholes: Derivation & Intuition
7 lessons
03
The Greeks & Dynamic Hedging
6 lessons
04
Volatility Surfaces & Smile Dynamics
5 lessons
05
Rate Models & Fixed Income
6 lessons

Example problems

A taste of what you'll work through.

1

A call option: K=100, S=98, σ=0.25, T=0.5yr, r=0.04. Find the delta and interpret it as a probability.

2

You are delta-neutral but not gamma-neutral. What market move will hurt your position most?

3

Why does implied volatility smile exist in equity options? What does it say about the risk-neutral distribution?

Expected outcome

You will be able to derive and critically evaluate options pricing models, articulate assumptions and limitations, and solve derivative pricing problems that come up at top trading firms.

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