Dr Georgy Chabakauri

This course is available on the MSc in Risk and Finance. This course is not available as an outside option.

Students must be registered for Management and Regulation of Risk (FM403).

This course aims to equip students with the fundamental concepts and tools underlying the asset markets side of modern finance. The course covers asset markets and valuation. The valuation of fixed-income securities is covered first, followed by the valuation of stocks, and derivatives such as futures and options. Concepts emphasized include the present-value formula, valuation by arbitrage, portfolio theory, the CAPM, market efficiency, and binomial and Black-Scholes models.

30 hours of seminars in the AT. This course is taught in the interactive lecturing format. There is no distinction between lectures and classes/seminars; there are “sessions” only, and the pedagogical approach in each session is interactive.

Weekly problem sets covered in classes.

• J. Berk and P. DeMarzo, Corporate Finance, Pearson International Edition.
• Z. Bodie, A. Kane and A. Marcus, Investments, 8th edition, McGraw Hill. ISBN:0-07-338237-X

Full details of reading will be specified in the Course Programme and Reading List which will be distributed at the first lecture.

Exam (100%, duration: 1 hour and 30 minutes, reading time: 10 minutes) in the spring exam period.