|
Lecturer(s)
|
|
|
|
Course content
|
Lectures: 1. Definition of basic terms - characteristics of investment instruments, financial and real investment instruments 2. Yield, risk and liquidity of investment instruments 3. Basic principles of valuation of investment instruments 4. Short-term and long-term debt instruments, valuation of bonds 5. Bond yield, yield curves and bond risk 6. Equity instruments and valuation of equity instruments 7. Stocks return and risk 8. Collective investment instruments - stocks of investment funds, investment certificates, ETF's, ETN's, ETC's 9. Markowitz portfolio theory 10. Financial derivatives - forward contracts 11. Financial derivatives - futures contracts 12. Financial derivatives - options 13. Financial derivatives - swap Seminars: 1. Basic classification of securities and pricing of securities 2. Financial arithmetic, simple and compound interest , future and current value 3. Securities of money market, yield basis and discount basis securities 4. Bonds - Bond pricing, bond yield measurement 5. Yield curve, yield curves types, spot and forward yield curve 6. Bond risks, Duration, convexity, immunization 7. Stock - intrinsic value, stock return 8. Risk and risks measurement 9. Portfolio analysis 10. Financial derivatives - forwards 11. Financial derivatives - futures 12. Financial derivatives - options 13. Financial derivatives - swaps
|
|
Learning activities and teaching methods
|
|
Monologic (reading, lecture, briefing), E-learning
|
|
Learning outcomes
|
The aim of the course is to familiarize students with the basic investment instruments of the financial market - securities and financial derivatives. After completing the course, the student becomes familiar with the terminology and legislation governing these instruments. Furthermore, the students are able to quantify the return and risks associated with individual investment instruments and understand the issue of their valuation.
Students are oriented in the issues and terminology of securities and financial derivatives. Students can calculate the yield and risk of individual investment instruments and are able to calculate the value of these investment instruments.
|
|
Prerequisites
|
-
|
|
Assessment methods and criteria
|
Test
Credit Requirements: Participation in exercises (75 %) Presentation of a selected topic from sylabus Credit test (min. 70%) Registration in the e-learning course in Moodle
|
|
Recommended literature
|
-
Fabozzi. F. J. Capital markets: institutions, instruments, and risk management (5th ed.). London, England: The MIT Press, 2015.
-
Hull. J. Options, futures, and other derivatives (10th ed.). Harlow, 2017.
-
Rose. P. S. Money and capital markets : financial institutions and instruments in a global marketplace. Boston, 2009.
-
Steiner. B. Mastering financial calculations : a step-by-step guide to the mathematics of financial market instruments (3rd ed.). Harlow, 2012.
|