This module has two main goals: it serves as a repetition of content students should already be familiar with as well as an application by transferring formulas into action. We rely on Excel, VBA, and MATLAB as software packages and cover basic concepts from B.Sc. studies as well as CFA Level I content.
First and foremost, the essential time value of money, followed by applications in risk management as well as asset pricing, e.g. bonds, derivatives, and portfolios. By the end of this course, the participants are able to remember and to understand these basic concepts and they learned to apply these concepts on real data. Due to the digitization it becomes more and more important to understand both requirements: those of the financial world as well as those of IT implementation to improve the mutual understanding between both sides. For the further finance modules in this M.Sc. program, the content provides the backbone of knowledge as well as of application methods. This includes especially the modules Corporate Finance, Investments, Econometrics, and Financial Engineering.
- Bodie, Zvi; Kane, Alex & Marcus, Alan J. (2014): Investments, 10th Edition, McGraw-Hill.
- Hull, John C. (2009): Options, Futures, and Other Derivatives, 7th Edition, Pearson.
- Hull, John C. (2012): Risk Management and Financial Institutions, Wiley.
- Jarrow, Robert A. & Chatterjea, Arkadev (2013): An Introduction to Derivative Securities, Financial Markets, and Risk Management, W.W. Norton & Co.
- Seydel, Rüdiger U. (2017): Tools for Computational Finance; Sixth Edition, Springer.
Photo Credit: Jana Tolle