Seminar: Financial Theory and Models (F)
Course content
We encourage students to define their own seminar content within the following broad categories:
- Corporate Finance, ex. Capital costs, dividend policy, costly contracts.
- Pricing of assets, ex. Interest rate models in continuous time, American put options, multi-dimensional models.
- Imperfect capital markets, ex. Financial mediation, agency costs.
- Equilibrium pricing, ex. Risk vulnerability, decreasing relative risk premium.
- The instructor will assist the students in determining and defining a proper seminar subject.
The seminar is primarily for students at the MSc of Economics
The course is a part of the financial line, signified by (F)
The seminar is primarily for students at the MSc of Economics.
After completing the seminar the student is expected to be able to fulfill the learning outcome specified in the Master curriculum and to be able to:
Knowledge:
- Identify, describe and discuss core problems in the rigorous modeling of basic financial notions.
- Account for the main technical tools used in a rigorous modeling of discrete and continuous time economics.
- Account for the main concepts of financial economics.
- Assess and discuss both benefits and deficiencies of the applied techniques and models under scrutiny.
Skills:
- Correctly select and apply core models to analyze problems in finance.
- Master the analysis of a given problem in finance by selecting and correctly applying the pertinent tools.
- Write reports and orally present own work and analysis to a group of peers, otherwise engage in academic discussions of financial economics, assess results and deficiencies of the applied models in a broader context of economics and society.
Competencies:
- 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.
- Apply the asquired skills as stepping stones to more advanced models and topics in finance and economics.
At the seminar the student is trained independently to
- identify and clarify a problem,
- seek and select relevant literatur,
- write a academic paper,
- present and discuss own paper with the other students at the
seminar.
Mandatory activities in the seminar:
- Kick-off meeting
- Finding literatur and defining the project
- Writing process of the seminar paper
- Presentation of own project and paper
- Giving constructive feedback to another student´s paper
- Actively participating in discussions at the presentations and
other meetings.
The aim of the presentations is, that you use the presentation as
an opportunity to practice oral skills and to receive feedback at
the paper. The presentations are not a part of the exam and will
not be assessed.
The seminar project paper must be uploaded in Absalon before the
presentations, as the opponents and the other seminar participants
have to read and comment on the paper. It is important that you
upload a paper that is so finalized as possible due to the fact
that the value of feedback and comments at the presentation is
strongly associated with the skill level of the seminar paper.
The teacher defines what materials may be used for the
presentations.
After the presentations, you can with a few corrections improve the
seminar paper by including the feedback and comments emerged during
the presentations. It is NOT intended that you rewrite or begin the
writing of the seminar paper after the presentation has taken
place.
Pandemic:
In case of a pandemic like Corona the teaching in this seminar may
be changed to be taught either fully or partly online. For further
information, see the course room on Absalon.
- Tomas Björk. Arbitrage Theory in Continuous Time. Oxford Finance Series, 3rd ed.
- John C. Hull. Options, Futures, and Other Derivatives. Pearson, Prentice Hall, 8th ed. 2012.
- Copeland/Weston. Financial Theory and Corporate Policy. Addison-Wesley.
- Jonathan Berk and Peter DeMarzo. Corporate Finance, 5th ed., Pearson 2019.
- Emanuel Derman and Michael B. Miller. The volatility Smile, Wiley Finance 2016.
- David Lando. Credit Risk Modeling. Theory and Applications. Princeton University Press.
- Frank Hansen. Decreasing relative risk premium. The B.E. Journal of Theoretical Economics 7(1), article 37, 2007.
The seminar is based on the course “Financial Theory and Models” but broadens the subject by including topics from microeconomics. The student will benefit from having attended the course “Financial Theory and Models” before taking the seminar.
BSc in Economics or similar
Schedule:
Spring 2021:
• Kick-Off meeting: Thursday, 11 February at 12:15-13:00
• Deadline for submitting commitmentpaper/ project description: Not
later than March 1st or as specified by the lecturer.
• Deadline of seminar paper uploaded to Absalon: Not later than one
week before the presentations or as specified by the lecturer.
• The presentation-meetings: In the period May 1st to 23th. Exact
dates are made in agreement at the Kick-Off meeting.
General information:
It is strongly recommended that you think about and search for a
topic before the semester begins, as there is only a few weeks from
the kick-off meeting to the submission of the project
description/agreement paper.
There is no weekly teaching/lecturing and the student cannot expect
guidance from the teacher. If the teacher gives a few introduction
lectures or gives the opportunity for guidance, this as well as
other expectations are clarified at the kickoff meeting.
All information regarding the seminar is communicated through
Absalon including venue. So it is very important that you by
yourself logon to Absalon and read the information already when you
are registered at the seminar.
For enrolled students: More information about registration, schedule, rules etc. can be found at Master (UK) and Master (DK ).
More information about seminars is available at Seminars (UK) and Seminars (DK).
Read about the study programme and curricula at MSc in Economics
- ECTS
- 7,5 ECTS
- Type of assessment
-
Written examinationA seminar paper in English that meets the formal requirements for written papers stated in the curriculum and at KUNet for seminars.
_____ - Aid
- All aids allowed
for the seminar paper.
The teacher defines the aids that must be used for the presentations.
____
- Marking scale
- 7-point grading scale
- Censorship form
- External censorship
_____
Criteria for exam assessment
Students are assessed on the extent to which they master the learning outcome for the seminar and can make use of the knowledge, skills and competencies listed in the learning outcomes in the Curriculum of the Master programme.
To receive the top grade, 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.
- Category
- Hours
- Project work
- 186
- Seminar
- 20
- English
- 206
Kursusinformation
- Language
- English
- Course number
- AØKK08394U
- ECTS
- 7,5 ECTS
- Programme level
- Full Degree Master
- Duration
-
1 semester
- Schedulegroup
-
and venue:
Go to "Remarks"
Exam and re-sits: Go to "Exam" - Capacity
- max. 1-2 classes of 20 students
- Studyboard
- Department of Economics, Study Council
Contracting department
- Department of Economics
Contracting faculty
- Faculty of Social Sciences
Course Coordinator
- Frank Hansen (12-6d79687572356f68757a6c75476c6a767535727c356b72)
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Courseinformation of students