This course presents and analyses financial options, such as American options and European options. Students will learn how to valuate options using the binomial option pricing technique as well as the Black-Scholes option pricing formula. Risk-neutral probabilities will be introduced. This course also discusses insurance, risks related to commodity prices, exchange rates as well as interest rates, and studies how to manage/hedge such risks. The efficient portfolio choice and the Capital Asset Pricing Model will be recapped at the beginning of the course.
The main textbook for the course is Berk/DeMarzo: “Corporate Finance”, 2nd ed., 2011.
- There is no application needed.
- Please find further information in the syllabus.
- Course materials can be found in the LSF.
|Oct 18||4pm - 6pm||Introduction and Recap 1||HGB B 101|
|Oct 25||4pm - 6pm||Introduction and Recap 2||HGB B 101|
|Nov 1||4pm - 6pm||No lecture||-|
|Nov 8||4pm - 6pm||Financial Options 1||HGB B 101|
|Nov 15||4pm - 6pm||Financial Options 2||HGB B 101|
|Nov 22||4pm - 6pm||Tutorial 1||HGB B 101|
|Nov 29||4pm - 6pm||Option Valuation 1||HGB B 101|
|Dec 6||4pm - 6pm||Option Valuation 2||HGB B 101|
|Dec 13||4pm - 6pm||Tutorial 2||HGB B 101|
|Dec 20||4pm - 6pm||Insurance and Hedging 1||HGB B 101|
|Jan 10||4pm - 6pm||Insurance and Hedging 2||HGB B 101|
|Jan 17||4pm - 6pm||Tutorial 3||HGB B 101|
|Jan 31||4pm - 6pm||Q&A||HGB B 101|
- To take the exam, registration via the LSF is necessary. The exam will take place February 14th 2017 from 14:30 until 15:30. The examination room will be announced by the ISC.
- Registration period for the exam: 12.12.2016-11.01.2017 (If you do not register for the exam you will face the following consequences .)
- 3 ECTS in Modul BWL VIII (ABWL) according to BSc PO 2008 or 3 ECTS in Modul P14.2 according to BSc PO 2015