Welcome to Advanced Financial Modelling!

Welcome! 

We shall discuss classical and not so classical models in stock exchanges, bond markets, and electricity markets in continuous time. We connect prices with prices of financial derivatives, such as options within the principle of no-arbitrage. We shall discuss methods for pricing based on risk-neutral evaluation and see the differences between, e.g, a stock exchange market and a flow commodity market as electricity is. We will discover the role of volatility modelling and how spikes in prices can be treated. All this to be able to deal with financial risks!

To warm up on the complex affairs, you can take a look at the movie "Margin Call" (2011)! What does margin call mean?