Financial Theories & Applications

This is an introductory course in finance that focuses on financial markets and instruments. The course provides students with an understanding of the roles of financial markets, how financial securities are priced and traded, and their role in the global financial system. We cover the financial system, interest rate determinsation, money markets, bonds, stocks, futures and options.

Syllabus

The TOPIX stock market index.

Options pricing.

Reasons to take the course

1. Gain a fundamental level of financial literacy that will be helpful in:
   1. future business, government or NPO career, and
   2. managing your personal finances.
2. Prepare for more advanced study of finance, such as courses in Portfolio Management and Behavioural Finance at AIU, or finance courses during study abroad.
3. Learn about the functioning of the global financial system so you can understand news about financial developments and the implications for the global economy and society.

Learning objectives

1. Understand the roles of various financial markets and institutions.
2. Understand the theory behind valuing financial securities.
3. Be able to calculate valuations for financial securities.
4. Understand how financial securities are traded.
5. Understand the characteristics of various financial markets.
6. Gain a broad understanding of the global financial system.

Interactive tools

• Bond pricing visualisation.
• Generic futures pricing calculator.
• Options pricing visualisation.

FAQs

Are there prerequisites?

• Microeconomics, mathematics and statistics are recommended.