Upon completing this course students will
(1) Understand the purpose and challenges of modeling in new markets.
(2) Understand the range of products available and their purpose.
(3) Be able to select appropriate tools to handle derivative products arising in new markets.
(4) Begin to be able to navigate the extensive literature in this field.
In recent years a wide range of new derivatives have emerged to manage and transfer risk resulting from industries not classically active in financial markets. The course is an introduction to new markets inc: electricity, weather and carbon credits. The aim of this course is to provide an overview of the unique economic and mathematical challenges posed by new markets.
