Economics 265 - Intro to Financial Econ

In this course, we study the role that financial markets play in allocating savings and investment. The study includes the fundamental pricing of stocks and bonds, the efficient markets hypothesis and the effect of asset prices on firms’ investment decisions. We then turn to derivative securities and how these securities are priced differently, based upon the absence of arbitrage. Finally, we show how the insights from derivative pricing can be incorporated into firms’ investment decisions.

Requisite: ECON 111/111E. Limited to 50 students. Fall semester. Professor Woglom.