[ 572EATMFMTK20 ] KS Financial Markets

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Workload Education level Study areas Responsible person Hours per week Coordinating university
3 ECTS B2 - Bachelor's programme 2. year Economics Johannes Muthers 2 hpw Johannes Kepler University Linz
Detailed information
Pre-requisites (*)KS Einführung in die Volkswirtschaftslehre KS Einführung in die Makroökonomie
Original study plan Bachelor's programme Economics and Business 2022W
Objectives Students will acquire a basic understanding of core theoretical concepts pertaining to financial markets which are embedded in a simple static model of financial economics.
Subject Introduction: Financial Terms and Concepts

Systems of Financial Markets
Spot Markets
Contingent commodities and contracts

Complete Financial Markets
Basic and Derived Securities
Return expectations and the concept of arbitrage-free prices
Arrow/Debreu securities

Ordinary Securities Markets
Concept of 'no free lunch'
Risk-neutral valuation: forwards & options

Individual Decision-Making Under Uncertainty
Expected utility
Optimal portfolio of securities
Basics of portfolio management

Criteria for evaluation Written final examination 90%, exercises, contributions 10%
Methods Lecture, practice exercises, contributions by students
Language English
Study material Reading:

Eichberger; Harper, Financial Economics, Oxford University Press, 1997

Changing subject? No
On-site course
Maximum number of participants 200
Assignment procedure Assignment according to priority