## Basic conceptsWhat is solvencyHow to differentiate divisibility, Liquidity and Short selling What is the No-Arbitrage principle How to use the one-step binomial model How to determine the risk and the expected return of an investment What is a forward contract What is a call option with strike price How to manage risk with options |
## Risk-free assetsHow to evaluate a simple interestHow to evaluate periodic compounding What is an annuity How to evaluate continuous compounding How to compare compounding methods What is a bond What is a coupon bond What is an investment bank |

## Risky assetsHow to determine the rate of return over a time intervalHow to evaluate the expected return on a stock How to use the binomial tree model How to use the trinomial tree model |
## Discrete time market modelsWhat are the various investment strategiesHow to use the principle of No arbitrage How to apply the binomial tree model How to use the fundamental theorem of asset pricing What is an extended model |

## Portfolio managementHow to measure riskHow to evaluate risk and expected return in the case of two risky securities How to evaluate risk and expected return in the case of several securities How to use the Capital asset pricing model |
## Forward and futures contractsWhat is a forward contractWhat is a futures contract How to hedge an exposure to stock price variations |

## General properties of optionsWhat is a European call optionWhat is an American put option What is the relationship between the prices of European Call and Put options |
## Option pricingHow to use the binomial tree model for European options How to use the binomial tree model for American options |

## Financial engineeringHow to Hedge option positionsHow to hedge business risk What is a yield What is the general term structure |