Financial economics

Academic year: 2006-2007 Course code module FTEBAAE200 Semester: 1st semester Credits: 3 Study load (hours) 84 Theory (hours): 24,00 Practice/Exercises(hours): 8,00 Other (hours): Part-time program: Instructor(s) Marc De Ceuster Language of instruction: Dutch Semester exam information: Contract restriction information: 1. Prerequisites *Algemene competenties None *Sequentiality 2. Objectives (expected learning outcomes) This course has two aims. 1) Students should acquire a concise overview of the role and the institutional structure of the financial markets and institutions. They must learn the basic terminology of the financial world so that they can easily understand financial economic reports. 2) Students should be able to understand and use introductory concepts such as the term structure of interest rates, princing of financial instruments and the risk-return trade off. 3. Course content First, the role of the financial markets and institutions in economic life are explained. Next, we study short-term financial markets such as treasury certificates, interbank loans, repurchase agreements and commercial paper. In part 3, the segments of long-term financial markets are discussed. Although bonds and stock markets get most attention, we also introduce the students to certificates from collective investment institutions, real estate certificates and other long-term products. The last part deals with derivative products such as forward contracts, futures and options. The core of the course are both the institutional part and the analytical concepts. Students should understand the essence of how the financial markets and institutions work. Furthermore, students have to be able to apply the analytical concepts in short exercises that are similar to the examples used in the course. 4. Teaching method Direct contact: Lectures Exercise sessions 5. Assessment method Exam: Closed book 6. Compulsory reading – study material Lecturer's notes 7. Recommended reading - study material None 8. Tutoring laatste aanpassing: last update: 30/03/2007 13:37 ann.aerts