Master

Lecture and Exercise (6 ECTS, 4 Sh)

The course is offered in the winter term.

Targets:

Students know the financial system and its main players and understand the relations between different financial instruments. They have in-depth knowledge of derivatives, i.e., forwards, futures, options, as well as interest rate and credit derivatives. They are able to price them and use them in different ways in the context of financial and risk management.

Content:

Overview of the financial system and financial institutions (banks, insurance companies, mutual funds, hedge funds and ETFs), different types of securities, basic valuation principles in financial markets, relation between different financial instruments, international currency markets and parity conditions, Introduction to options, forwards, and futures, pricing of options in the binomial model and the Black-Scholes model, interest rate and credit derivatives, risk management.

Contact person: Alexander Götz

Lecture and Exercise (6 ECTS, 4 Sh)

The course is offered in the summer term.

Targets:

Students have in-depth knowledge of the valuation of firms. They understand the necessary accounting information and can critically review a company's key performance metrics. Students are able to forecast future cash flows that are necessary for the valuation of a firm. They can determine risk-adequate cost of capital. Students can apply different approaches to value a company and understand the specific assumptions and limitations of the models.

Content:

Analysis of financial statements to determine and forecast cash flows of companies, Du Pont analysis, models to determine the cost of capital, intrinsic valuation methos (Dividend Discount Model, Firm Free Cash Flow Model, Adjusted Present Value Model), relative valuation using multiples, real options approach.

Contact person: Marius Schmidt

Seminar (6 ECTS, 2 Sh)

The seminar is offered in the summer and in the winter term.

Content:

In the seminar, changing topics from the field of finance are dealt with in depth. Students analyze a given academic publication and research further relevant literature themselves. In their empirical work, students analyze their own scientific question at an advanced level using data from common financial market databases and demonstrate their contribution to the current state of research.
The students summarize the results of their work in a 12-page paper. The students then present their seminar papers in small groups as part of a block event.

Objectives:

After successfully completing the module, students will be able to

• Understand, interpret, summarize and discuss questions, methodology and results of more complex scientific publications
• Place scientific publications in a wider context and demonstrate their contribution to the state of research
• Carry out own empirical analyses at an advanced level on a current research topic (development of a research question, selection of a suitable methodology, data preparation and data analysis)
• Classify and critically discuss the results of their own work in the current state of research
• Write a short scientific paper
• Give a scientific presentation

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