ID:
37153-ENG2
Dettaglio:
SSD: Engineering and Management
Duration: 48
CFU: 6
Located in:
DALMINE
Url:
MANAGEMENT ENGINEERING - 37-270-EN/COMUNE Year: 1
Year:
2025
Course Catalogue:
Overview
Date/time interval
Primo Semestre (15/09/2025 - 20/12/2025)
Syllabus
Course Objectives
After attending this course, the student has the basic knowledge to analyze financial systems. In particular, she/he knows the different types of financial markets, what financial instruments are used by firms, households and investors, and with what strategies. After attending this course, the student knows: how to price fixed income securities, equity securities, derivative securities (options, futures and forward); evaluate the main sources of risk; take financing and investment decisions; prepare and present financial reporting documents according to the current standards required by the financial industry; understand the principles of sustainable finance.
The course contributes to the learning objectives of the course of study, concerning the area of economic-management disciplines, in particular with respect to the analysis of corporate finance and financial systems.
The course contributes to the learning objectives of the course of study, concerning the area of economic-management disciplines, in particular with respect to the analysis of corporate finance and financial systems.
Course Prerequisites
The attendance of this course does not require the successful completion of any other course. Nevertheless, a basic knowledge in Business Economics is recommended for a fruitful attendance of the course.
Teaching Methods
The course is organized in lectures and classes.
During the lectures, the fundamentals of the discipline will be presented, as well as the main events that characterize the financial markets, developing a dialogue between theory and practice.
The classes, instead, will provide exercises to be solved, aimed at developing practical skills.
It is also possible to participate (on a voluntary basis) to a project to deepen the financial issues, led by external experts, aimed at learning the methods of preparation and presentation of financial reporting documents, according to the current standards required by the financial industry.
During the lectures, the fundamentals of the discipline will be presented, as well as the main events that characterize the financial markets, developing a dialogue between theory and practice.
The classes, instead, will provide exercises to be solved, aimed at developing practical skills.
It is also possible to participate (on a voluntary basis) to a project to deepen the financial issues, led by external experts, aimed at learning the methods of preparation and presentation of financial reporting documents, according to the current standards required by the financial industry.
Assessment Methods
The exam is written, composed of three problems, and extends over two hours. Each problem involves the practical resolution of some questions, using the calculation techniques learned during the classes. Comments and interpretations of the results obtained will also be required.
For all students enrolled in the course, it is possible to take the exam by in the form of two intermediate tests, scheduled at the middle and at the end of the course. These two tests will have the structure of the final exam, but will cover the first and second part of the program, respectively. Students will have two hours to take each test, and will receive two separate evaluations. The final evaluation will be calculated as the average of the two results.
All students who have passed the written test are allowed to access an optional oral exam. The oral exam consists in a new evaluation, on the whole content of the course, with particular reference to the theoretical contents. In case the oral exam is passed, the final evaluation will be attributed as the average of the written and the oral exam.
For all students enrolled in the course, it is possible to take the exam by in the form of two intermediate tests, scheduled at the middle and at the end of the course. These two tests will have the structure of the final exam, but will cover the first and second part of the program, respectively. Students will have two hours to take each test, and will receive two separate evaluations. The final evaluation will be calculated as the average of the two results.
All students who have passed the written test are allowed to access an optional oral exam. The oral exam consists in a new evaluation, on the whole content of the course, with particular reference to the theoretical contents. In case the oral exam is passed, the final evaluation will be attributed as the average of the written and the oral exam.
Contents
The course is organized into six teaching units.
I. Introduction to finance and financial markets.
General considerations on the financial function and on the role of finance in the economical system.
Financial markets.
Financial intermediaries.
Financial contracts and pricing.
Introduction to financial mathematics.
Currencies: Spot price and forward price.
The yield curve.
The risk: pure risks and financial risks.
Price volatility.
Expected return.
(12h lectures + 6h classes)
II. Fixed Income Securities
Definition and general characteristics.
Pricing of fixed income securities.
Yield to maturity and duration.
Corporate bonds: fixed and floating interest rates, particular cases, convertible bonds, bonds in foreign currencies.
Government bonds: general characteristics and main types.
Structured securities: collar, FRN, reverse floaters, reverse convertibles, equity linked, catastrophe bonds.
(12h lectures + 6h classes)
III. Equity Securities
Definition and classification of stock shares.
Pricing of equity securities.
Profitability indices.
The primary equity market: capital increases.
The secondary market.
The Italian Stock Exchange and the European markets: characteristics and methods of operation.
(8h lectures + 6h classes)
IV. Derivative securities
Definition and functions.
General types of derivative securities: forwards, futures, swaps, options.
The pricing of derivatives: forward price and forward value, Black and Scholes model.
Marking to market of futures and the role of the Clearing House.
European and American options.
Parity theorem.
Use of derivatives: hedging, hedging strategies with application to exchange rate and interest rate risks.
(8h lectures + 6h classes)
V. Portfolio theory.
Capital asset pricing model (CAPM) and Arbitrage Pricing Theory.
Mutual funds.
The Italian Stock Exchange and European markets: intermediaries, the exchange of derivatives and online trading.
(8h lectures)
VI. Corporate Governance.
Fundamentals of Corporate Governance.
Stewardship Theory and Agency Theory.
Internal and external control mechanisms.
Case studies.
(8h lectures)
VII. Digital Finance
Technology and transformation of the financial markets.
Crowdfunding.
Cryptocurrencies.
ICOs.
(8h lectures)
VIII. Introduction to sustainable finance
Understanding ESG principles
Impact of ESG principles on investment risk and return
(8h seminars)
I. Introduction to finance and financial markets.
General considerations on the financial function and on the role of finance in the economical system.
Financial markets.
Financial intermediaries.
Financial contracts and pricing.
Introduction to financial mathematics.
Currencies: Spot price and forward price.
The yield curve.
The risk: pure risks and financial risks.
Price volatility.
Expected return.
(12h lectures + 6h classes)
II. Fixed Income Securities
Definition and general characteristics.
Pricing of fixed income securities.
Yield to maturity and duration.
Corporate bonds: fixed and floating interest rates, particular cases, convertible bonds, bonds in foreign currencies.
Government bonds: general characteristics and main types.
Structured securities: collar, FRN, reverse floaters, reverse convertibles, equity linked, catastrophe bonds.
(12h lectures + 6h classes)
III. Equity Securities
Definition and classification of stock shares.
Pricing of equity securities.
Profitability indices.
The primary equity market: capital increases.
The secondary market.
The Italian Stock Exchange and the European markets: characteristics and methods of operation.
(8h lectures + 6h classes)
IV. Derivative securities
Definition and functions.
General types of derivative securities: forwards, futures, swaps, options.
The pricing of derivatives: forward price and forward value, Black and Scholes model.
Marking to market of futures and the role of the Clearing House.
European and American options.
Parity theorem.
Use of derivatives: hedging, hedging strategies with application to exchange rate and interest rate risks.
(8h lectures + 6h classes)
V. Portfolio theory.
Capital asset pricing model (CAPM) and Arbitrage Pricing Theory.
Mutual funds.
The Italian Stock Exchange and European markets: intermediaries, the exchange of derivatives and online trading.
(8h lectures)
VI. Corporate Governance.
Fundamentals of Corporate Governance.
Stewardship Theory and Agency Theory.
Internal and external control mechanisms.
Case studies.
(8h lectures)
VII. Digital Finance
Technology and transformation of the financial markets.
Crowdfunding.
Cryptocurrencies.
ICOs.
(8h lectures)
VIII. Introduction to sustainable finance
Understanding ESG principles
Impact of ESG principles on investment risk and return
(8h seminars)
Online Resources
More information
The exam rules are the same for both attending and non-attending students. Therefore even non-attending students can access the two intermediate tests. Non-attending students are invited to contact the teacher for support in preparing the written exam.
Degrees
Degrees
MANAGEMENT ENGINEERING - 37-270-EN
Master's Degree
2 years
No Results Found
People
People (2)
Teaching staff
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Other
Main module
Finance I (Financial Markets and Corporate Finance)