DURHAM UNIVERSITY 
FINN3101: Financial Derivatives and Financial Engineering 
Final Examination Guide and Notes 2025 
 
Part 01: About This Guide 
Part 02: Sample Final Examination Paper 
Part 03: Suggested Solutions to Final Exam Paper 
Part 04: Proven Exam Strategies and Tips 
 
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FINN3101: Financial Derivatives and Financial Engineering

£25.00

ACADEMIC YEAR 2025 - 2026

University	Durham University
Module Code	FINN3101
Level	Level 3
Module Name	Financial Derivatives and Financial Engineering
Notes Title	Final Examination Guide and Notes
Page Length	30

Get exam-ready for FINN3101: Financial Derivatives and Financial Engineering at Durham University with this clear, focused set of notes. Built to support you from the first week through the final exam, it aligns with the latest assessment requirements and includes exam-style questions with detailed, step-by-step solutions to show what examiners look for and where marks are earned. You’ll also get practical guidance on the exam format, what to expect on the day, and concise explanations of the essential concepts you need to succeed.

FINN3101: Financial Derivatives and Financial Engineering introduces students to the theory and practice of financial derivatives and financial engineering, focusing on key concepts, products, and strategies. Building on knowledge from the prerequisite module FINN2021: Financial Markets and Institutions, it aims to equip students with the understanding and tools needed to analyse and apply derivative instruments effectively in financial markets.

Key Areas of Focus:

Introduction to option contracts and stochastic calculus.
Option properties.
Derivation of Black and Scholes (1973) and the pricing of options written on different underlying assets.
Monte Carlo simulation and the Cox, Ross and Rubinstein (1979) Binomial Asset Pricing Model.
Exotic options.
Estimating volatility and correlation.
Value at Risk (VaR).
Issues in futures markets.
Swaps, characteristics and application.
Credit risk and credit derivatives.
Energy, weather and insurance derivatives.

MODULE CODE	MODULE NAME
ACCT1061	Financial Accounting
ACCT1101	Fundamentals of Management Accounting
ACCT2071	Financial Management
ACCT2081	Management Accounting
ACCT2101	Financial Reporting
ACCT2141	Intermediate Financial Reporting
ACCT3091	Corporate Reporting
BUSI1131	Marketing Principles
BUSI1141	People, Management and Organisations
ECON1011	Principles of Economics
ECON1021	Economic Methods
ECON2011	Macroeconomics
ECON2021	Microeconomics
ECON2061	Econometrics
FINN1011	Foundations of Finance
FINN1037	Quantitative Methods 2
FINN1061	Introduction to Financial Economics
FINN2021	Financial Markets and Institutions
FINN2041	Corporate Finance
FINN2117	Derivative Markets
FINN3101	Financial Derivatives and Financial Engineering
MATH1617	Statistics I

FINN3101: Financial Derivatives and Financial Engineering

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