Financial Markets and Instruments
| Code | School | Level | Credits | Semesters |
| BUSI4621 | Business | 4 | 20 | Autumn UK |
- Code
- BUSI4621
- School
- Business
- Level
- 4
- Credits
- 20
- Semesters
- Autumn UK
Summary
The module examines how the major financial markets operate and how financial instruments that are traded in these markets are priced. The module covers markets for equities, debts, foreign exchange, and derivatives. It also covers the key theoretical models of modern finance, key market conventions, trading mechanisms, and the management of risk management using financial derivatives. It provides students with a knowledge and understanding of the key financial instruments such as money market instruments, bills and bonds, forwards, futures, swaps, and options.
Target Students
Available to Business School MSc Financial Technology students and MSc Exchange students.
Classes
- One 1-hour tutorial each week for 11 weeks
- One 3-hour lecture each week for 11 weeks
Assessment
- 60% Assignment: Test 2, 3000 words - computer lab assessment
- 40% Exam: Test 1, computer lab (MCQ's)
Assessed by end of autumn semester
Educational Aims
To understand the key mechanisms, major elements and contemporary issues of major financial markets and instruments. To introduce students to the pricing of major financial instruments and the process and theory of financial risk management with derivative instruments. To provide students with the skills and ideas necessary to implement basic computational approaches to financial problems.Learning Outcomes
Knowledge and understanding: This module develops a knowledge and understanding of:
* Explain the operation of markets for key financial instruments.
* Describe characteristics of key financial instruments.
* Describe how key financial instruments are priced and traded.
* Explain the various types of risk inherent in the trading of key financial instruments.
Intellectual Skills: This module develops:
* Discuss similarities and differences among key financial instruments, including but not limited to the risk and return characteristics, and their roles in portfolio construction and risk diversification.
* Critically appraise how key financial instruments can be used to enhance portfolio returns and manage risk.
Professional Practical Skills: This module develops:
* Apply a range of techniques to price and value key financial instruments.
* Design and test trading strategies.
* Construct efficient portfolios.
Transferable (key) Skills: This module develops:
* Manage and interpret statistical, financial, and economic data.
* Manage independent study and demonstrate effective planning and time-management skills.
* Critically evaluate research and information from various sources.