Financial Theory and Models (F)
Course content
The course introduces tools for the analysis of both discrete and continuous time asset pricing models. Methods to price derivaties under a no-arbitrage condition are studied and applied. Various interest rate models are introduced. Models for risky debt and optimal capital structure are studied. The appropriate mathematical tools are introduced and explained in the course.
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 modeling of basic financial notions.
- Account for the main technical tools used in 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 methods 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.
- 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.
Competencies:
- Apply the acquired skills to new areas of analysis in both financial economics as well as in broader fields of economics.
- Master and modify the studied tools and methods in new situations.
- 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).
Schema:
The overall schema for the BA 3rd year and Master can be seen at
KUnet:
MSc in Economics => "Courses and teaching" =>
"Planning and overview" => "Your timetable"
BA i Økonomi/KA i Økonomi => "Kurser og undervisning"
=> "Planlægning og overblik" => "Dit
skema"
Timetable and venue:
To see the time and location of lectures please press the link
under "Timetable"/"Se skema" at the right side
of this page. E means Autumn.
You can find the similar information partly in English at
https://skema.ku.dk/ku2425/uk/module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for
respond)
-Select Module:: “2200-E24; [Name of course]””
-Select Report Type: “List – Weekdays”
-Select Period: “Efterår/Autumn”
Press: “ View Timetable”
Please be aware:
- The schedule of the lectures and exercise classes can change
without the participants´ acceptance. If this occures, you can see
the new schedule in your personal timetable at KUnet, in the app
myUCPH and through the links in the right side of this course
description and the link above.
- It is the students´s own responsibility continuously throughout
the study to stay informed about their study, their teaching, their
schedule, their exams etc. through the curriculum of the study
programme, the study pages at KUnet, student messages, the course
description, the Digital Exam portal, Absalon, the personal schema
at KUnet and myUCPH app etc.
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.
- Exam registration requirements
-
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 info:
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
- Go to 'Signup' for information about registration and enrollment.
- Price
-
Information about admission and tuition fee: Master and Exchange Programme, credit students and guest students (Open University)
- Schedulegroup
-
and venue:
- For teaching: Go to 'Remarks'.
- For exam and re-sits: Go to 'Exam'. - Studyboard
- Department of Economics, Study Council
Contracting department
- Department of Economics
Contracting faculty
- Faculty of Social Sciences
Course Coordinator
- Frank Hansen (12-6f7b6a777437716a777c6e77496e6c787737747e376d74)
Teacher
See 'Course Coordinators'
Please read "Remarks" regarding the schedule of the
teaching.
Timetable
Are you BA- or KA-student?
Courseinformation of students