DALMINE
Overview
Date/time interval
Syllabus
Course Objectives
At the end of the course, students will have acquired basic knowledge for understanding and analyzing the functioning of financial systems. In particular, they will be familiar with:
- the main characteristics of different types of financial markets;
- the financial instruments used by firms and individual investors;
- the financial strategies adopted for investment and risk management.
Students will be able to:
- evaluate fixed-income securities, equities, and derivative instruments (options, futures, forwards);
- identify the main sources of financial risk;
- make informed financing and investment decisions;
- prepare financial reporting documents in line with current industry standards;
- understand the implications of financial responsibility.
The course contributes to the educational objectives of the degree program in the economic-managerial area, particularly with reference to corporate finance analysis and structured knowledge of financial systems.
Course Prerequisites
Teaching Methods
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
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. 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. 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.