Introduction into Financial Economics
- Understanding of the time value of money concept.
- Demonstration of skills to schedule loan repayments correctly.
- Ability to evaluate the efficiency of investment projects when the main attributes are given.
- Understanding of the structure of option contracts.
- Capability to assess the revenue from setting up a swap contract.
- Time value of moneyPresent value, future value, discounting with an infinite time horizon, effective annual interest rate.
- LendingRepayment plans, interest payments, principal payments, balance, annuity.
- InvestingNet present value, internal rate of return, payback period.
- Derivatives (options)European options, spot price, strike price, options strategies.
- Derivatives (swaps)Interest rate swap, currency swap, forward rate agreement, forward period, forward rate.
- Mid-term exam 1
- Mid-term exam 2
- Final exam*among students with more than 40% of total points. If more than 5% of students scored the same number of points making it impossible to identify the grades clearly, then the lower grade can be applied.
- Interim assessment (3 module)0.7 * Final exam + 0.15 * Mid-term exam 1 + 0.15 * Mid-term exam 2
- Hull, J. C. (2017). Options, Futures, and Other Derivatives, Global Edition. [Place of publication not identified]: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1538007
- Macmenamin, J. (2012). Financial management : #an #introduction. Slovenia, Europe: Routledge. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.B19F4429
- Alec N. Kercheval. (2012). Financial Economics: A Concise Introduction to Classical and Behavioral Finance, by T. Hens and M. O. Rieger. Quantitative Finance, (10), 1487. https://doi.org/10.1080/14697688.2012.695085