Gwybodaeth Modiwlau

This module is taught over two semesters. The aim of the module is to provide students with an understanding of the modern financial environment: from financial markets and institutions, basic concepts of risk and return, through to modern financial instruments with specific reference to securitisation and foreign exchange and derivatives markets. The module also concentrates several lectures at a firm-specific level, focusing on corporate finance and asset pricing. Specifically, the lectures will provide a review of asset pricing, capital asset pricing models, valuation of fixed and variable income securities and option pricing with specific reference to the Black-Scholes option pricing models.

The first part of the module focuses on various pricing approaches for financial assets. We then address current issues in financial market research, notably market microstructure. The final element of the module is focused on financial institutions, with particular emphasis on capital adequacy and credit risk.