Financial Markets

Course guarantor:

Lecturer:

Tutor:

Supervisor:

Department of Software Engineering

Synopsis:

Financial sector has been deeply transformed in the recent years, which led to a development of structured financial products, a new point of view on the issue of credit risk, and globalization of market activities. The need to use and properly apply mathematical and technical tools is emphasized. To manage their financial activities, many firms need graduates from technical schools who have sufficient knowledge ICT and mathematics, and who have at the same time an understanding of the functioning of financial markets. The Financial Markets course thus englobes both a description of financial markets and related economic theories, and an overview of mathematical and statistical tools used in this field.

Requirements:

The subject is designed for BA level, it complements the compulsory elective economics and management modules. Basic courses of calculus and statistics are prerequisites.

Syllabus of lectures:

- Basic overview of the financial system

- Interest rates, money market, bond market

- Stock market and exchange market

- Modeling of financial time series

- Investment valuation, risk, portfolio valuation, CAPM model

- Efficient markets hypothesis, issue of securities

- Dividend payments, capital structure and value of a firm

- Credit risk

- Risk management and financial derivatives: futures and forwards, option pricing

- Financial institutions and financial crises, role of central banks

Syllabus of tutorials:

- Interest rates, bond pricing

- Stock pricing

- Modeling of financial time series

- Investment valuation, risk, portfolio valuation, CAPM model

- Financial derivatives: futures and forwards, option pricing

Study Objective:

The goal of this course is to present to FIT students the functioning of financial markets, mainly their economic aspects and mathematical tools that are being used. Acquired knowledge will be applied using available information technology.

Study materials:

F. S. Mishkin, S. G. Eakins: Financial Markets and Institutions

R. A. Brealey, S. C. Myers, F. Allen: Principles of Corporate Finance

Note:

Further information:

https://courses.fit.cvut.cz/BI-FTR/

No time-table has been prepared for this course

The course is a part of the following study plans:

• Bachelor branch Security and Information Technology, in English, 2015-2020 (compulsory elective economic-management course, elective course)
• Bachelor branch Web and Software Engineering, spec. Software Engineering, in English, 2015-2020 (compulsory elective economic-management course, elective course)
• Bachelor branch Computer Science, in English, 2015-2020 (compulsory elective economic-management course, elective course)
• Bachelor Specialization Computer Engineering, 2021 (elective course)
• Bachelor Specialization, Information Security, 2021 (elective course)
• Bachelor Specialization, Software Engineering, 2021 (elective course)
• Bachelor Specialization, Computer Science, 2021 (elective course)
• Bachelor Specialization, Computer Networks and Internet, 2021 (elective course)
• Bachelor Specialization Computer Systems and Virtualization, 2021 (elective course)
• Study plan for Ukrainian refugees (elective course)
• Bachelor branch Computer Science, in English, 2015-2020 original version (compulsory elective economic-management course, elective course)
• Bachelor Specialization, Computer Engineering, Version 2024 (elective course)