Financial Markets and Risk Management

Relations:

In order to register for the course 16S2FM, the student must have registered for the course 16S2CFM in a previous semester.

Course guarantor:

Lecturer:

Tutor:

Supervisor:

Institute of Management Studies

Synopsis:

The course provides students with a hands-on knowledge of financial markets and financial instruments, their structure and conventions. They learn to use market instruments and market analyses to design efficient investment and hedging strategies and methods for the capital management of a company. Seminars take place interactively in the PC lab, which facilitates instruction and the solving of case studies using current market data and other online resources.

Requirements:

BSc-level courses in Financial Management and Mathematics

Syllabus of lectures:

Financial Instruments and Financial Markets

Trading and Settlement Conventions

Financial Derivatives

Behaviour of Markets and Measuring Market Risk

Determinants of Market Value, Financial Arbitrage

Financial Risk Analysis

Hedging and Hedging Strategies

Managing Nonlinear Risks

Economic Capital and its Applications

Syllabus of tutorials:

Financial Instruments and Financial Markets

Trading and Settlement Conventions

Financial Derivatives

Behaviour of Markets and Measuring Market Risk

Determinants of Market Value, Financial Arbitrage

Financial Risk Analysis

Hedging and Hedging Strategies

Managing Nonlinear Risks

Economic Capital and its Applications

Study Objective:

By the end of the course, students will be able to understand the structure, operation and behaviour of financial markets and the utilization of various financial instruments, including financial derivatives.

Study materials:

Mandatory:

Pilbeam, K. Finance and Financial Markets. 3rd ed. New York: Palgrave Macmillan, 2010. ISBN 978-0-230-23321-8

Steiner, B. Key Financial Market Concepts: The 100 Terms Every Finance Professional Needs to Know. 2nd ed. Harlow: Prentice Hall, 2011. ISBN 978-0-273-75012-3

Myint, S., Famery, F. The Handbook of Corporate Financial Risk Management. London: Risk Books, 2012. ISBN 978-1-906-34892-2

Supplementary:

Davidson, A. How the Global Financial Markets Really Work: The Definitive Guide to Understanding International Investment and Money Flows. London: Kogan Page, 2009. ISBN 978-0-7494-5393-0

Malz, A.M. Financial Risk Management: Models, History and Institutions. Hoboken: Wiley Finance, 2011. ISBN 978-0-470-48180-6

Hull, J. Options, Futures and Other Derivatives. 8th ed. New Jersey: Prentice Hall, 2012. ISBN 978-0-13-216511-2

Lybeck, J.A. A Global History of the Financial Crash of 2007-2010. Cambridge: Cambridge University Press, 2011. ISBN 978-1-1076-4888-3

Monda, B., Giorgino, M., Modolin, I. Rationales for Corporate Risk Management: A Critical Literature Review. Munich: RePEc, 2013. Online at http://mpra.ub.uni-muenchen.de/45420/

Note:

Further information:

No time-table has been prepared for this course

The course is a part of the following study plans:

• N-PRI-prez.forma od 15/16 (compulsory course of the branch)