Main Field of Study and progress level:
Economics: Second cycle, has only first-cycle course/s as entry requirements
Grading scale: Three-grade scale
Responsible department: Department of Economics
Contents
The following topics are covered:
The course starts with a thorough review of the bond market, including the derivation of the key models for the pricing of bonds and their function as instruments to optimize risk management. Subsequent sections deals with the futures, swaps and options markets with a focus on financial derivatives, how they are priced and their function as risk management tools.
Expected learning outcomes
Having completed the course Financial Economics II D21, the studfent is expected to
- have a good knowledge of the functioning of bonds and the bonds market.
- have a good knowledge in how bonds are priced and how they can be used as financial
instruments to deal with financial risks.
- have a good knowledge of how the markets for futures/forwards, swaps and options
functions.
- have a good knowledge in how financial derivatvies are priced and how they can be used as
instruments to deal with financial risks.
Required Knowledge
University: Courses in Economics at undergraduate level equal to 90ECTS (whereof 30ECTS C-level courses) including a Bachelor thesis of 15ECTS or the equal writing experience. Students are also required to have English A from Swedish gymnasium or the equivalent.
Form of instruction
The education is given in form of lectures, teacher-led exercises and seminars.
Examination modes
The examination consists of a written exam at the end of the course.
Students that not recieves the grade Pass or Pass with Distinction on the first exam have the possibility to write a second exam within a close time. Subsequently exam opportunities are given the next time the course is offered. In addition to these opportunities are all exams offered in August each year. Contact the study advisor for more information
Students with the grade Pass or Passed with Distinction are not eligible to write a new exam in order to raise the grade.
A student that has failed on two exams on the same module has the right to apply for a new lecturer correcting the exam. The application has to be sent to the Board for the Faculty of Social Science.
A student accepted to the course has the right to take an exam on the course and all its modules up until two years after the syllabus has changed or the course has been closed.
CREDIT TRANSFER
Director of Studies at the Department of Economics has the right to decide if a students previous studies at another university can be transferred to Umeå University. A student applying for a credit transfer shall include verified copies of course certificate or the corresponding documents, where the university (or collage), subject, grading date, level, number of credits and grade are included. The syllabus and the literature list have to be attached to the application.
For further information contact the study advisor.
Literature
Valid from:
2011 week 42
Hull John Options, futures, and other derivatives 6. ed. : Upper Saddle River, N.J. : Pearson Prentice Hall : cop. 2006 : xxii, 789 s. : ISBN: 0-13-149908-4 (inb.) Mandatory Search the University Library catalogue
Fabozzi Frank J. Bond markets, analysis, and strategies 7th ed., Pearson International ed. : Boston, Mass. ; London : Pearson : c2010. : xiii, 778 p. : ISBN: 978-0-13-609974-1 (pbk.) Search the University Library catalogue
