Part I: Fundamentals* Introduction * Legal Framework * Fundamental Risk Factors of Financial Markets * Financial Instruments - A System of Derivatives and Underlyings *Part II: Methods* Overview of the Assumptions for Different Valuation Methods * Present Value Methods, Yields and Traditional Risk Measures * Arbitrage * The Black-Scholes Differential Equation * Integral Forms and Analytic Solutions in the Black-Scholes World * Numerical Solutions of Differential Equations using Finite Differences * Binomial and Trinomial Trees * Monte-Carlo Simulations * Hedging * Martingale and Numeraire * Interest Rates and Term Structure Models *Part III: Instruments* Spot Transactions on Interest Instruments * Forward Transactions on Interest Rates * Plain Vanilla Options * Exotic Options * Structured Products and Stripping *Part IV: Risk* Fundamentals * The Variance-Covariance Method * Simulation Methods * Interest Rate Risk and Cash Flows * Example * VaR-Computation Backtesting: Checking the Applied Methods * Risk Adjusted Return and Portfolio Theory *Part V: Market Data* Interest Rate Term Structures * Volatility Market Parameter from Historical Time Series * Time Series Modelling * Forecasting with Time Series Models * Principle Component Analysis * Pre-Treatment of Time Series and Assesment of Models * Probabiltiy and Statistics.