Corporate Financial Policy (MBA programme, P2)
Corporate Financial Policy is an intermediate course in finance. The first part of the course provides an introduction to basic derivative securities, in particular forwards, futures and options. We discuss how these instruments are priced and who trades them. The second part of the course studies corporate financing decisions. We look in greater detail at the choice of capital structure, and also analyze more advanced topics such as dividend policy, new security issues and share buy-backs. The third part of the course focuses on applications of derivative valuation to corporate finance issues, such as convertible securities and real options. The course will consist of lectures, case discussion and exercises.
Management Acceleration Programme (EDP open enrolment programme)
Spanning one week in a three-week executive education programme, the finance module focuses on topics in finance that are important for managers coming from non-financial backgrounds. How to read a financial statement, and more importantly, how to extract the crucial information from it that helps managers understand the firms problems, its positions of strength, and assess opportunities for value creation. We discuss methods of quantifying investment opportunities and where the pitfalls lie in inherently uncertain environments.
Continuous Time Finance (PhD programme, P1 & P2)
This course develops the theory of dynamic asset pricing and equilibrium under uncertainty. The course examines continuous-time models of asset pricing with Ito-process dynamics (e.g., the Black-Scholes stock option pricing model). In each type of market setting (complete market, incomplete market, market with transactions costs or investment restrictions), we shall successively ask three questions:
How to replicate and price redundant securities?
How to obtain optimal portfolios of nonredundant securities?
How to determine the equilibrium - consumption policies, security prices and their dynamics - in a market populated with optimizing investors?
This course is a short elective with the intention to provide an overview over the current research topics in the field of international finance.
Topics arch over empirical as well as theoretical research of asset pricing and corporate finance issues, and is based on in-class discussion of papers by the participants.