Financial Risk & Valuation: Bonds to Options
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Financial Risk & Valuation: Bonds to Options
This course is part of Financial Risk and Quantitative Finance Specialization
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What you'll learn
Apply valuation and risk models, including VaR, to measure and manage financial risk.
Analyze fixed income securities using duration, convexity, and yield curve techniques.
Evaluate derivatives and hedging strategies using option pricing models and Greeks.
Skills you'll gain
Tools you'll learn
Details to know
June 2026
24 assignments
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There are 6 modules in this course
Master financial risk modeling, valuation techniques, and derivatives pricing for real-world finance and FRM success.
Learn how to apply VaR, bond analytics, and option pricing models with confidence. This course provides a comprehensive foundation in valuation and risk models aligned with FRM Level I. You will explore portfolio theory, risk measurement techniques, and credit risk frameworks before advancing into fixed income analytics and derivatives pricing. Through structured modules, you will learn how to measure and manage risk using tools like Value at Risk (VaR), duration, convexity, and yield curve analysis. The course also introduces binomial models and the Black-Scholes framework to price options and understand market behavior. By the end of the course, you will be able to analyze financial risks, evaluate investment decisions, and implement hedging strategies using Greeks. Whether you are preparing for the FRM exam or building practical finance skills, this course equips you with industry-relevant knowledge and application-focused insights.
Learn core risk-return principles, diversification, coherent risk measures, and practical Value at Risk (VaR) applications.
What's included
8 videos4 assignments
8 videos•Total 66 minutes
- Introduction to Course•3 minutes
- Learning Objectives•11 minutes
- Mean Variance Framework•10 minutes
- Coherent Risk Measure•5 minutes
- VaR•12 minutes
- Calculating and Applying•9 minutes
- Calculating and Applying Continue•7 minutes
- VaR Approaches•9 minutes
4 assignments•Total 60 minutes
- Foundations of Risk & Portfolio Theory •30 minutes
- Course Kickoff & Objectives•10 minutes
- Portfolio Theory Basics•10 minutes
- VaR in Practice•10 minutes
Analyze credit ratings, country risk, expected vs unexpected loss, and operational risk in financial institutions.
What's included
9 videos4 assignments
9 videos•Total 94 minutes
- VaR Approaches Continue•12 minutes
- External Credit Ratings•12 minutes
- Internal Credit Ratings•10 minutes
- Rating Biases•3 minutes
- Country Risk- Determinants•11 minutes
- Measures and Implications•13 minutes
- Bond Defaults•13 minutes
- Expected and Unexpected Loss•8 minutes
- Operational Risk•12 minutes
4 assignments•Total 60 minutes
- Advanced Risk Measurement Techniques•30 minutes
- VaR Methodologies Deep Dive•10 minutes
- Credit Risk & Biases•10 minutes
- Loss & Risk Types•10 minutes
Understand regulatory frameworks, stress testing techniques, discounting, arbitrage, and interest rate fundamentals.
What's included
8 videos4 assignments
8 videos•Total 69 minutes
- Regulatory Capital•9 minutes
- Tool and Term•3 minutes
- Stress Testing•10 minutes
- Stress Testing Continue•10 minutes
- Pricing Convention•11 minutes
- Discounting•12 minutes
- Arbitrage•6 minutes
- Interest Rates•9 minutes
4 assignments•Total 60 minutes
- Regulatory & Stress Testing Frameworks•30 minutes
- Capital & Regulatory Framework•10 minutes
- Stress Testing Concepts•10 minutes
- Time Value & Arbitrage•10 minutes
Evaluate bonds using pricing models, yield curves, spreads, YTM, duration, convexity, and return decomposition.
What's included
9 videos4 assignments
9 videos•Total 86 minutes
- Yield Curve and Term Structure•10 minutes
- Bond Pricing•5 minutes
- Bond Spread•11 minutes
- Bond YTM•12 minutes
- Return Decomposition•10 minutes
- Different Method Example•11 minutes
- Applying Duration•11 minutes
- Convexity•11 minutes
- DV01•6 minutes
4 assignments•Total 60 minutes
- Fixed Income & Yield Analysis•30 minutes
- Yield Curve Mechanics•10 minutes
- Bond Valuation Metrics•10 minutes
- Duration & Convexity•10 minutes
Model yield curve movements, analyze non-parallel shifts, and apply binomial models for pricing and risk analysis.
What's included
8 videos4 assignments
8 videos•Total 88 minutes
- Issue with one Factor Approach•11 minutes
- Non Parallel Term Example 1•11 minutes
- Non Parallel Term Example 2•13 minutes
- Non Parallel Term Example 3•13 minutes
- Binomial Model•10 minutes
- Modifying the Binomial•13 minutes
- Modifying the Binomial Continue•7 minutes
- Lognormal Property of Stock Price•11 minutes
4 assignments•Total 60 minutes
- UntitledInterest Rate Risk Modeling•30 minutes
- Term Structure Challenges•10 minutes
- Advanced Curve Movements•10 minutes
- Binomial Enhancements•10 minutes
Price options using Black-Scholes and binomial models, and manage risk using Greeks and hedging techniques.
What's included
8 videos4 assignments
8 videos•Total 93 minutes
- The BSM Formula•13 minutes
- The BSM Formula Continue•10 minutes
- BSM Example•13 minutes
- Greeks•12 minutes
- Delta vs Moneyness•11 minutes
- European Call and Put•11 minutes
- Delta Natural Heeding•12 minutes
- Delta Natural Heeding Continue•11 minutes
4 assignments•Total 60 minutes
- Derivatives & Option Pricing•30 minutes
- Black-Scholes Foundation•10 minutes
- Option Sensitivities (Greeks)•10 minutes
- Hedging Strategies•10 minutes
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