Financial Economics
Ryosuke Wada, 2 credits (optional, spring semester)
1. Course objective and method
The objective is to understand basic concepts of financial economics; optimization over time, asset valuation and risk management. Lectures are given in English. Many homework exercises require use of computers; Excel and Mathematica. Use of software will be explained.
2. Course contents
1. time value of money and discounted cash flow analysis
2. valuation of bonds and stocks
3. risk management
4. prices of derivatives; futures, forward and options contracts
The level of mathematical sophistication is elementary algebra, including sum of geometric sequences.
3. Teaching materials
To be determined
4. Grading
Allocation of weights will be one exam (60 %), homeworks (25%), class participation (15%). Working together on homeworks is encouraged.
