ECON5007 The Economics of Financial Markets

Overview

Financial markets play a fundamental role in a modern economy. In this unit of study we analyse how financial markets function, with a particular focus on: the factors underlying demand and supply; risk and uncertainty; incomplete contracts and renegotiation; and asymmetric information and its implications. In doing so, we identify the key features of markets for financial assets. The unit also examines the development of financial institutions and current issues in financial markets.

Topic 1: Introduction to Financial Markets

Topic 2: Financial Mathematics

Topic 3: The Capital Asset Pricing Model (CAPM)

Topic 4: Foreign Exchange Market

Topic 5: Trading Strategies

Topic 6: Forwards, Swaps, and Futures

Topic 7: Options

Topic 8: Bond Markets and Fixed-Interest Securities

Topic 9: Mergers and Acquisitions

Topic 10: Portfolio and Risk Management