UNIVERSITY OF LONDON

FN3206: Derivatives & Risk Management

Final Examination Guide and Notes 2026

Part 01: About This Guide

Part 02: Sample Final Examination Paper

Part 03: Suggested Solutions to Final Exam Paper

Part 04: Final Examination - Hints and Tips

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(University of London) Derivatives and Risk Management - FN3206

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ACADEMIC YEAR 2026 - 2027

University	University of London
Module Code	FN3206
Module Level	6
Credit Value	30
Module Name	Derivatives & Risk Management
Notes Title	Final Examination Guide and Notes
Format	PDF
Page Length	30

This comprehensive guide for FN3206: Derivatives and Risk Management at the University of London helps you understand the current final examination format and practise the question styles most likely to appear. It shows you the key question types to focus on, uses clear diagrams to make core ideas easier to recall, and highlights priority topics for revision. You will get exam-style questions, answers, step-by-step explanations, plus final examination hints and tips to support confident preparation.

FN3206: Derivatives and Risk Management provides an in-depth exploration of financial derivatives, including equity derivatives such as standard call and put options, exotic options, futures, forward contracts, and interest rate derivatives (swaps, caps, floors, swaptions). It examines how these products work, their applications in hedging and trading strategies, and their pricing mechanisms using models such as binomial trees and Black-Scholes, with a strong emphasis on key concepts like absence of arbitrage, replication, and risk-neutral pricing.

The course also introduces quantitative risk management techniques essential in modern finance. Topics covered include risk measures (Value-at-Risk and Expected Shortfall), univariate and multivariate volatility models, Monte Carlo simulations, and econometric methods. Practical application of these techniques is reinforced through R programming, with real-world examples drawn from financial crises and market events, ensuring students are well-prepared for analysing and managing market risk.

MODULE CODE	MODULE NAME
AC1025	Principles of Accounting
AC2091	Financial Reporting
AC2097	Management Accounting
AC3059	Financial Management
EC1002	Introduction to Economics
EC2020	Elements of Econometrics
EC2065	Macroeconomics
EC2066	Microeconomics
FN1024	Principles of Banking and Finance
FN2029	Financial Intermediation
FN2190	Asset Pricing and Financial Markets
FN2191	Principles of Corporate Finance
FN2203	Principles of Asset Pricing
FN2208	Financial Data Analysis
FN3023	Investment Management
FN3092	Corporate Finance
FN3142	Quantitative Finance
FN3204	Investments and Portfolio Management
FN3206	Derivatives and Risk Management
MN1178	Business and Management in a Global Context
MN2028	Managerial Economics
MN3141	Marketing Management
ST104A	Statistics 1
ST104B	Statistics 2
ST2187	Business Analytics, Applied Modelling & Prediction

UKNOTES

(University of London) Derivatives and Risk Management - FN3206

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