Course - Finance for Science and Technology Students, Advanced Course - TIØ4147
TIØ4147 - Finance for Science and Technology Students, Advanced Course
About
Examination arrangement
Examination arrangement: Written examination
Grade: Letters
Evaluation | Weighting | Duration | Grade deviation | Examination aids |
---|---|---|---|---|
Skriftlig | 100/100 | 4 timer |
Course content
The course expands and deepens the knowledge of finance that students obtained in TIØ4146 Finance for Science and Technology students. The extensions include alternative portfolio models and pricing models like Arbitrage Pricing Theory (APT), as well as a more extensive analysis of capital structure choice that includes the more general comparative statics analysis. The use and pricing of derivatives like options, futures and forwards are an important part of the course. The application areas include corporate decisions regarding investment in projects, credit risk, conglomerate mergers and risk reduction through hedging. Real options analysis is extended with option interaction and game-theoretic aspects. Modern theory of financial contracting (agency theory) is also included. The course provides students with the knowledge to answer questions like: why does analyzing projects in terms of options lead to other decisions than traditional investment analysis? When is there interaction between real options and what does game theory mean for the exercise decision of real options? How can the risk of production and trade in raw materials be reduced by buying or selling derivatives? Why can good projects be turned down and bad projects accepted?
Learning outcome
The courses place and role in the study program: In combination with TIØ4146 Finance for Science and Technology students this course is aimed at science and technology students who want a more profound understanding of how investment decisions regarding projects are made and who want to obtain sufficient knowledge of finance to be equal discussion partners with economist regarding the valuation of projects, including the strategic aspects of future expansion possibilities (real options analysis). The course is intended to convey the following knowledge: General knowledge about the role of financial markets in pricing securities, especially derivatives, and in the reduction and management of risk (hedging). The course conveys specific knowledge about pricing models like APT and about how the choice of capital categories for a project can be modeled. Specific knowledge about pricing derivatives like futures and forwards and how these derivatives can be used in trading strategies that reduce risk (hedging). Specific knowledge about how option interaction and game theory affect real options analysis. Specific knowledge about how option pricing techniques can be used for corporate decision regarding the choice of projects, credit risk and mergers. Specific knowledge about how financial contracts affect economic decisions regarding projects. Practical examples and exercises will help students to develop the necessary skills to apply this knowledge in practical decision making problems regarding investment, financing and risk management.
Learning methods and activities
Lectures and exercises. The course will be taught in English. The re-examination, if any, will be oral instead of written.
Course materials
To be announced at semester start
No
Version: 1
Credits:
7.5 SP
Study level: Second degree level
Term no.: 1
Teaching semester: AUTUMN 2014
Language of instruction: English
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- Financial Economics
- Technological subjects
Department with academic responsibility
Department of Industrial Economics and Technology Management
Examination
Examination arrangement: Written examination
- Term Status code Evaluation Weighting Examination aids Date Time Examination system Room *
- Autumn ORD Skriftlig 100/100 2014-12-04 09:00
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Room Building Number of candidates - Summer KONT Skriftlig 100/100
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Room Building Number of candidates
- * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.
For more information regarding registration for examination and examination procedures, see "Innsida - Exams"