Day of Derivatives

What started with discussion on distributions and simulation techniques for random numbers went on to analysis of stocks, and later fixed income derivatives, during the applied financial engineering class today. And while Antonio was busy teaching us the brute force techniques for all this analysis through excel and Matlab, it started snowing outside. First snow during day time in Madrid and although the snowflakes were not so dense, they kept falling for almost an hour.

It was a great feeling to sit in the class studying while watching the snowfall from class window. Though this was not the first time I am seeing the snowfall, this was definitely first class I was having while the snow spread it's rule outside.

Next class was of applied corporate finance where Conchita started International corporate finance topics today, and introduced us to how derivative products can help in both speculating the returns and hedging the risks associated with cross-country investments. Another application of derivatives, that can be really helpful in deciding international investment strategies.

Spent the rest of the day today reading and preparing for tomorrow's classes and came home early to have more share of sleep today, after staying up late in school last night.

Overall, a day spent around derivatives, and innovative application and analysis techniques for derivatives.