Financial Theory and Models (F)
Course content
The course introduces the appropriate tools for the analysis of
asset pricing models in both discrete and continuous time. A
comprenhensive theory of interest rate models is introduced and
various practical examples are given. Models for risky debt and
optimal capital structure are studied.
The course only requires basic mathematical understanding and
techniques corresponding to the courses MAT A and MAT B at the
department of Economics.
MSc programme in Economics – elective course
Bacheloruddannelsen i økonomi – valgfag på 3. år
The Danish BSc programme in Economics - elective at the 3rd year
The course is part of the Financial line at the MSc programme in Economics, symbolized by ‘F’.
The course is open to:
- Exchange and Guest students from abroad
- Credit students from Danish Universities
- Open University students
After completing the course the student is expected to be able to:
Knowledge:
- Identify, describe and discuss core problems in the rigorous theoretical modeling of basic financial notions
- Understand the main technical tools used in the rigorous modeling of discrete and continuous time economics
- Understand the main concepts of theoretical financial economics
- Being able to assess and discuss both benefits and deficiencies
of the applied methods and models under scrutiny
Skills:
- Correctly select and apply core theoretical models to analyze problems in finance
- Master the analysis of a given problem in finance by selecting and correctly applying the pertinent tools
- Able to engage in academic discussions of financial economics and to assess both results and deficiencies of the applied models in a broader context of economics and society
Competences:
- Able to apply the acquired skills to new areas of analysis in both financial economics as well as in broader fields of economics
- Apply and modify the studied tools and methods in new situations
- Able to apply the acquired skills as stepping stones to more advanced models and topics in finance and economics
Lectures supported by supplemental lectures and exercises
Text book: Tomas Björk. Arbitrage Theory in Continuous Time. Oxford Finance Series, 3rd Edition.
Supplementary teaching material and exercise lists provided by the teacher.
The student will benefit from having attended "Corporate
Finance and Incentives" or similar from the study of
Economics, University of Copenhagen.
The student will benefit from attending "Financial Decision
Making" or similar from the study of Economics, University of
Copenhagen at the same time as the course.
The student should have a sound knowledge of markets and prices
from a similar course as "Microeconomics I" from the
Bachelor of Economics, University of Copenhagen.
The student should have a basic knowledge of probability from a
similar course as "Probability Theory and Statistics"
from the Bachelor of Economics, University of Copenhagen.
For non-economic student it is recommended to have followed similar
courses as "Business Economics", "Mathematics
A" and "Mathematics B" or similar from the Bachelor
of Economics, University of Copenhagen, before or at the same time
as "Financial Theory and Models".
Schedule:
2 hours lectures once a week from week 36 to 50 (except week 42).
2 hours exercise classes once a week from week 36 to 50 (except
week 42).
for enrolled students. Rules at Master(UK) and Master(DK) and Bachelor(DK)
When registered you will be signed up for exam.
- Full-degree students – sign up at Selfservice on KUnet
- Exchange and guest students from abroad – sign up through Mobility Online and Selfservice- read more through this website.
- Credit students from Danish universities - sign up through this website.
- Open University students - sign up through this website.
The dates for the exams are found here Exams – Faculty of Social Sciences - University of Copenhagen (ku.dk)
Please note that it is your own responsibility to check for overlapping exam dates.
- ECTS
- 7,5 ECTS
- Type of assessment
-
On-site written exam, 3 hours under invigilation
- Type of assessment details
- ITX-exam in the exam venues of the university.
- Examination prerequisites
-
There are no requirements that the student has to fulfill during the course to be able to sit the exam.
- Aid
- Written aids allowed
- Marking scale
- 7-point grading scale
- Censorship form
- No external censorship
- Exam period
-
Exam information:
The examination date can be found in the exam schedule here
The exact time and place will be available in Digital Exam from the middle of the semester.
More information about examination, rules, aids etc. at Master(UK), Master(DK) and Bachelor(DK).
- Re-exam
-
Same as the ordinary exam.
Reexam information:
The reexamination date/period can be found in the reexam schedule here
Exact day, time and place is available in Digital Exam in February.
More info: Master(UK), Master(DK) and Bachelor.
Criteria for exam assessment
Students are assessed on the extent to which they master the learning outcome for the course.
In order to obtain the top grade "12", the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.
In order to obtain the passing grade “02”, the student must in a satisfactory way be able to demonstrate a minimal acceptable level of the knowledge, skills and competencies listed in the learning outcomes.
Single subject courses (day)
- Category
- Hours
- Lectures
- 28
- Class Instruction
- 28
- Preparation
- 147
- Exam
- 3
- English
- 206
Kursusinformation
- Language
- English
- Course number
- AØKA08234U
- ECTS
- 7,5 ECTS
- Programme level
- Full Degree Master
Bachelor
- Duration
-
1 semester
- Placement
- Autumn
- Price
-
Information about admission and tuition fee: Master and Exchange Programme, credit students and guest students (Open University)
- Studyboard
- Department of Economics, Study Council
Contracting department
- Department of Economics
Contracting faculty
- Faculty of Social Sciences
Course Coordinator
- Frank Hansen (12-6b77667370336d6673786a73456a68747333707a336970)
Teacher
See 'Course Coordinators'
Er du BA- eller KA-studerende?
Kursusinformation for indskrevne studerende