This module offers you a standard introduction of the field of corporate finance at postgraduate level. You consider the classical areas of Modigliani-Miller irrelevance, Taxes and capital structure, Trade-off theory and Pecking order theory of capital structure, before exploring the more modern areas, which are essentially based on contract theory.
Master the pricing of financial derivatives and their use for hedging financial risks. You study the basics of futures and options, analyse the Black-Scholes and binomial option pricing models, and consider various numerical techniques for pricing financial derivatives. Futures and options are then utilised in the context of hedging financial risks, and you are introduced to the concept of volatility trading and the treatment of volatility as an asset class.
Gain a formal introduction to asset pricing theories and empirical findings. You review the fundamental theories of the expected utility, asset pricing kernels, and risk-neutral valuation, covering the Capital Asset Pricing Model (CAPM), and linear factor models arising from the Arbitrage Pricing Theory (APT). You also discuss empirical asset pricing studies.
Consider the use of modern econometric techniques in the analysis of financial time series. You cover multivariate models for stationary and non-stationary processes, such as Vector Autoregressive models, consider appropriate models for volatility, and study Markov processes and simulation methods used for financial modelling.
Behavioural finance rejects crucial tenets of mainstream finance such as the Efficient Market Hypothesis (EMH) on the basis that agents are less than fully rational, and that arbitrage fails to eliminate mispricing. Instead it identifies market anomalies or regularities such as holiday effects that are at odds with the EMH. You learn to use ideas from cognitive psychology, such as overconfidence, and aspects of imperfect arbitrage to explain these.
The recent financial crisis and credit crunch have demonstrated that risk management was too narrowly defined. In this course you examine the Value at Risk (VAR) measure of financial risk developed in the 1990s, before discussing the new post-crisis Regulatory environment.
Discover the concepts and tools that are useful to asset managers who want to use fixed income securities for investing, market-making or speculating. You first study fixed income markets and instruments, before going on to explore basic concepts of bond portfolio management and investigating the quantitative tools used to value bonds and manage bonds' portfolios.
Gain theoretical knowledge and a practical understanding of financial markets, trading strategies, risk and money management and trader analytics at the highest level. You study a mix of classroom-based instruction, case studies and practical trading exercises where you trade on real-time simulated global markets through the use of industry-strength proprietary trading software in the trading lab.
Explore the basics of the structure and environment of banking, and selected aspects of the applied economics of the modern banking firm. You study structure-conduct-performance, competition, bank efficiency, regulation, international banking and bank failures and crises.
Analyse the key strategic developments in banking and the main aspects of risk management in modern banks. You are introduced to the concept of shareholder value in banking, the main banking strategies to create shareholder value, the key risks in banking, and the most important tools required to manage bank risks.
Taught exclusively by leading industry experts, this module offers you a unique opportunity to appreciate the latest developments and issues faced by leading practitioners in the areas of quantitative finance and risk management.
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