Program Overview

Program Overview

The Financial Economics D2 program is a 7.5-credit course offered at Umeå University. It is a second-cycle course that provides deep knowledge and understanding of financial derivatives.

Course Objectives

The objective of the course is to provide a deep knowledge and understanding of financial derivatives. The course starts by describing the futures market, including the mechanics of the futures markets, hedging strategies using futures, and the determination of forward and futures prices. A subsequent part of the course covers interest and currency swap contracts.

Course Content

The course covers the following topics:

• Mechanics of options markets
• Properties of stock options
• Trading strategies involving options
• Binomial trees
• Wiener processes and Ito's Lemma
• The Black-Scholes-Merton model for option pricing
• Options on stock indices
• The Greek letters
• Volatility smiles and estimation procedures
• Credit risk
• Credit derivatives
• Exotic options
• Interest rate derivatives

Eligibility and Selection

To be eligible for the course, students must have:

• 90 credits of which at least 7.5 credits in mathematics containing calculus, such as One-dimensional calculus 1 or Mathematical Economics I D7
• Proficiency in English equivalent to the Swedish upper secondary course English 6 Selection is based on academic credits.

Application and Tuition Fees

• Application fee: SEK 900
• Tuition fee, first instalment: SEK 12,075
• Total fee: SEK 12,075 As a citizen of a country outside the European Union (EU), the European Economic Area (EEA) or Switzerland, students are required to pay application and tuition fees for studies at Umeå University.

Study Details

• Type: Course, second cycle
• Study pace: Full time
• Study location: Umeå
• Type of studies: On campus
• Language: English
• Number of credits: 7.5 credits
• Teaching hours: Daytime
• Starts: 3 November 2025
• Ends: 3 December 2025

About Umeå University

Umeå University is a vibrant academic community where high-quality education meets groundbreaking research in science, technology, humanities, and the arts. The university is certified as a Healthy Campus, with many initiatives that promote health and well-being. It is also ranked #1 globally in the main categories of Living, Support, and Overall Satisfaction.