Finance consists of three interrelated areas: money and capital markets, investments, and financial management. Career opportunities within each field are varied and numerous, but financial managers much have a knowledge of all three areas. This course helps students to make good financial decisions, provides a solid text for the introductory Financial management, and motivates students by demonstrating finance is relevant and interesting.
Eugene F. Brigham, Louis C. Gapenski, and Michael C. Ehrhardt, Financial Management: Theory and Practice, South-Western Educational Publishing.
Midterm examination 25%
Written Report and Presentation (accompanied with PPT slides) 25%
Course Dates and Outlines
10/13/2007Risk and return: Basics and extensions
10/27/2007Time value of money; Report #1
11/10/2007Stocks and their valuation; Report #2
11/24/2007The cost of capital; Midterm Examination
12/08/2007The cost of capital; Report #3
12/22/2007Capital Structure; Report #4
1/05/2008Dividend Policy; Final Examination
Report #1: Is Bond downgrade good news or bad news to shareholders? Using call and/put option’s implied volatility and the executive stock option plans as the proxies of the downgrade reasons.
Report #2: Using VIX futures and VIX options to hedge forward volatility risk.
Report #3: The impact of economic derivatives (including digital options) on stock markets.
Report #4: Is option implied volatility a good proxy for the risk of the company’s investment projects?
要回答REPORT#2:USING VIX FUTURES AND VIX OPTIONS TO HEDGE FORWARD VOLATILITY RISK.