1. Financial derivatives, vanilla options, and exotic options. 2. Binomial financial model and Cox-Ross-Rubinstein option pricing formula. 3. Black-Scholes financial model and Black-Scholes option pricing formula. 4. No-arbitrage, risk-neutral probability, and the completeness of financial market.

CILO-1: Explain and apply basic concepts of finance, financial derivatives, markets and mathematics. CILO-2: Solve the problems on option pricing in discrete time financial models. CILO-3: Formulate and solve the problems on option pricing in continuous time financial models. CILO-4: Use mathematical models for option pricing problems by using the knowledge of financial mathematics.