Module Catalogues, Xi'an Jiaotong-Liverpool University   
 
Module Code: ACF306
Module Title: Finance and Markets
Module Level: Level 3
Module Credits: 5.00
Academic Year: 2017/18
Semester: SEM2
Originating Department: International Business School
Pre-requisites: N/A
   
Aims
The aim of this module is to give students a solid grounding of the market of financial instruments and the role of credit in the development of financial markets, including financial crises and asset bubbles. The first part of this module focuses on the dynamics of financial crises and the response methods that has been utilized to solve them. The second part focuses on the use of financial instruments (e.g., futures, options and swaps as well as credit derivatives) in terms of pricing, trading and risk management (e.g., hedging). Also, this part provides solid theoretical foundations of these products in order to expand the understanding of the role of financial instruments (e.g. derivatives) in market efficiency and financial crises.
Learning outcomes 
A. Analyze and identify the seeds and dynamics of financial crisis to enable the formation of possible future crises to be forecasted.

B. Assess the consequences of credit expansion.

C. Evaluate the use of standardised derivatives for various purposes, including pricing and trading.
D. Apply financial instruments to hedge risk (including credit/market risk).

E. Demonstrate a knowledge and understanding of the socioeconomic value of financial derivatives in financial crises, including trading mechanisms and rules, and regulation and settlement.

F. Understand and interpret classical and recent key research papers related to the credit crunch and the development of financial instruments with relation to market risk and credit risk.

Method of teaching and learning 
This module will be taught using a combination of lectures and tutorials. Learning will also be reinforced by appropriate readings from the course text. See the module handbook and/or ICE for more details.
Syllabus 
- Introduction to modern financial markets

- Credit creation / Seeds of crisis

- Dynamics of crisis / Theories of crisis

- Consequences of credit expansion

- Role of regulation and responses to the crisis

- Introduction to options and option trading strategies

- Pricing and hedging of derivatives (forwards, futures and swaps)

- Introduction to credit derivatives

- Valuation of credit derivatives

- Risk management for credit derivatives

- The determination of derivatives prices
Delivery Hours  
Lectures Seminars Tutorials Lab/Prcaticals Fieldwork / Placement Other(Private study) Total
Hours/Semester 26   7        117  150 

Assessment

Sequence Method % of Final Mark
1 Assignment 15.00
2 Final Exam 85.00

Module Catalogue generated from SITS CUT-OFF: 10/22/2017 9:27:50 PM