ECON 392(F) Finance and Capital Markets (Q)
This course gives a survey of financial markets and currency trading. We begin by exploring the role of capital markets in the flow-of-funds between savers and investors, their role in risk redistribution and continue with the analysis of exchange-rate markets. Topics include: risk and return tradeoffs, models of stock and bond prices, the capital asset pricing model, financial derivatives (options, futures, currency swaps), hedging, "efficient markets" theories of financial markets and order flow analysis in currency markets.
Evaluation will be based on problem sets, midterm, final, a project and class participation.
Prerequisites: Economics 251 and either Statistics 101 or 201 or Economics 253 or Economics 255. Enrollment limit: 25 (expected: 25). Preference to majors.
Hour: SAVASER