First, the role of the financial markets and institutions in economic life are explained. Next, we study short-term financial markets such as treasury certificates, interbank loans, repurchase agreements and commercial paper. In part 3, the segments of long-term financial markets are discussed. Although bonds and stock markets get most attention, we also introduce the students to certificates from collective investment institutions, real estate certificates and other long-term products. The last part deals with derivative products such as forward contracts, futures and options.
The core of the course are both the institutional part and the analytical concepts. Students should understand the essence of how the financial markets and institutions work. Furthermore, students have to be able to apply the analytical concepts in short exercises that are similar to the examples used in the course.