78159 - Financial Products and Markets

Course Unit Page

  • Teacher Mascia Bedendo

  • Credits 6

  • SSD SECS-P/11

  • Teaching Mode Traditional lectures

  • Language English

  • Campus of Bologna

  • Degree Programme Second cycle degree programme (LM) in Economics (cod. 8408)

  • Course Timetable from Feb 14, 2022 to Mar 15, 2022

SDGs

This teaching activity contributes to the achievement of the Sustainable Development Goals of the UN 2030 Agenda.

Quality education

Academic Year 2021/2022

Learning outcomes

At the end of the course the student has a sound knowledge of the financial products traded in the market, the differences among them, and the reasons why they were introduced in the market. The products range from standard bonds and stocks, to derivatives and structured finance products. The student has knowledge of the main agents trading in the market, as fund raisers or investors, as well as financial intermediaries.

Course contents

The course starts by illustrating the role that financial markets play in the economy. Students are introduced to the key finance concepts of time value of money and no-arbitrage valuation. These concepts are applied to the valuation of two asset classes: Fixed-income securities and financial derivatives. In detail:

  • Valuation of risk-free fixed income assets (government bonds). The yield curve. Interest rate risk.
  • Valuation of fixed income assets issued by risky entities (corporate bonds). Credit risk. Liquidity risk.
  • Valuation of financial derivatives (forward/futures, swaps, options).
  • Hedging risks with financial derivatives. Derivatives and speculation.

Readings/Bibliography

Required readings:

Z. Bodie, A. Kane and A. Marcus, Investments, 11th edition, McGraw Hill (selected chapters only, as indicated in the slideset).

Any other material that will be posted on Virtuale.

Teaching methods

Lectures, exercises, groupwork.

Assessment methods

30% of the grade: Groupwork to be handed in by the last session date. The grade received on the groupwork remains valid for the entire academic year. Detailed information on the groupwork will be posted on Virtuale in the first weeks of the course.

70% of the grade: Written, closed-book exam, which consists of a combination of true/false questions, open-ended questions and exercises. A mock exam will be provided on Virtuale.

The maximum possible score on the overall exam is 30 cum laude, in case all answers are correct, complete and formally rigorous. The grade distribution is as follows:
<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 cum laude excellent

In case of an online exam, the exam will be run through Zoom and Exams Online (EOL). Detailed instructions on how to manage and hand in the online exam will be made available on Virtuale prior to the exam.

Teaching tools

Slides

Exercises

Office hours

See the website of Mascia Bedendo