The aim of this module is to enable students to apply the fundamental ideas of financial economics to problems in the area of corporate finance. Students will gain an overview of valuation principles, and how financial decisions – capital structure, dividend policy, investments, etc. – can affect valuation, learn basic principles of corporate finance from the perspective of a financial manager, and analyze many of the important financial decisions made within firms.
The purpose of this module is to provide the necessary skills to value and to employ options, futures, and related financial contracts. Topics covered include the valuation of futures contracts on stock indices, on commodities and Treasury instruments; the valuation of options; empirical evidence; strategies with respect to these assets; dynamic asset allocation strategies; swaps; and the use (and misuse) of derivatives in the context of corporate applications.