Course Syllabus

Course Information：

Year-Semester Course Number Course Name Phase Credits Hours Required/Elective Instructor Class Student NO. Withdraw Note

Fall Semester
Year 2025 350447 Introduction to Financial Engineering 1 3.0 3 ★ Liu, Liang-chih GIFM 20 0 　

Year-Semester	Course Number	Course Name	Phase	Credits	Hours	Required/Elective	Instructor	Class	Student NO.	Withdraw	Note
Fall Semester Year 2025	350447	Introduction to Financial Engineering	1	3.0	3	★	Liu, Liang-chih	GIFM	20	0

Course Plan：

Instructor Liu, Liang-chih　Office Hours

Email lcliu@ntut.edu.tw

Last Updated 2025-05-27 16:37:50

Course Objective This course will shed light on the methodology for evaluating derivatives, hedging and managing investment risk. The pricing algorithm will be implemented in C language and Matlab. The problems that will be dealt with include the approximation of internal rates of returns via the bisection and Newton method, and the calculation of spot rate curves via the bootstrap method.

Course Schedule Week 1 : Course Introduction and Preliminary Week 2 : The Tool for Coding C Language and Matlab Week 3 : If /Else Structure and For/While Loop Week 4 : Cash Flow Evaluation / Bisection and Newton Method-1 Week 5 : Cash Flow Evaluation / Bisection and Newton Method-2 Week 6 : Cash Flow Evaluation / Bisection and Newton Method-3 Week 7 : Cash Flow Evaluation / Bisection and Newton Method-4 Week 8 : Matrix Week 9 : Bond Evaluation / Introduction of Interest Rates-1 Week 10 : Bond Evaluation / Introduction of Interest Rates-2 Week 11 : Bond Evaluation / Introduction of Interest Rates-3 Week 12 : Bond Evaluation / Introduction of Interest Rates-4 Week 13 : Bond Evaluation / Introduction of Interest Rates-5 Week 14 : Hedging for the Bond Position-1 Week 15 : Hedging for the Bond Position-2 Week 16 : Hedging for the Bond Position-3 Week 17 : Final Exam Week 18 : Course Review

Evaluation and grading policy Homework: 60% Take-Home Final Term: 40%

Materials All right reserved. Do not reproduce without permission.

Foreign-language textbooks:Yes
Options, Futures, and Other Derivatives, by J. C. Hull, 8TH Edition, Prentice Hall

The access to curricular consultation You can contact me in the office hours (announced later) in Room 433 in Technology Building

The course corresponds to the SDGs SDG4：優質教育（Quality Education）
SDG9：產業創新與基礎設施（Industry, Innovation and Infrastructure）

Does the course incorporate AI AI2：鼓勵學生使用生成式AI工具（Encourage students to use generative AI tools）

Note
　

Instructor	Liu, Liang-chih　Office Hours
Email	lcliu@ntut.edu.tw
Last Updated	2025-05-27 16:37:50
Course Objective	This course will shed light on the methodology for evaluating derivatives, hedging and managing investment risk. The pricing algorithm will be implemented in C language and Matlab. The problems that will be dealt with include the approximation of internal rates of returns via the bisection and Newton method, and the calculation of spot rate curves via the bootstrap method.
Course Schedule	Week 1 : Course Introduction and Preliminary Week 2 : The Tool for Coding C Language and Matlab Week 3 : If /Else Structure and For/While Loop Week 4 : Cash Flow Evaluation / Bisection and Newton Method-1 Week 5 : Cash Flow Evaluation / Bisection and Newton Method-2 Week 6 : Cash Flow Evaluation / Bisection and Newton Method-3 Week 7 : Cash Flow Evaluation / Bisection and Newton Method-4 Week 8 : Matrix Week 9 : Bond Evaluation / Introduction of Interest Rates-1 Week 10 : Bond Evaluation / Introduction of Interest Rates-2 Week 11 : Bond Evaluation / Introduction of Interest Rates-3 Week 12 : Bond Evaluation / Introduction of Interest Rates-4 Week 13 : Bond Evaluation / Introduction of Interest Rates-5 Week 14 : Hedging for the Bond Position-1 Week 15 : Hedging for the Bond Position-2 Week 16 : Hedging for the Bond Position-3 Week 17 : Final Exam Week 18 : Course Review
Evaluation and grading policy	Homework: 60% Take-Home Final Term: 40%
Materials	All right reserved. Do not reproduce without permission. Foreign-language textbooks:Yes Options, Futures, and Other Derivatives, by J. C. Hull, 8TH Edition, Prentice Hall
The access to curricular consultation	You can contact me in the office hours (announced later) in Room 433 in Technology Building
The course corresponds to the SDGs	SDG4：優質教育（Quality Education） SDG9：產業創新與基礎設施（Industry, Innovation and Infrastructure）
Does the course incorporate AI	AI2：鼓勵學生使用生成式AI工具（Encourage students to use generative AI tools）
Note