Module ECOS2141: FINANCIAL MARKETS AND RISK MANAGEMENT

Department: ECONOMICS FINANCE AND BUSINESS (BUSINESS FINANCE) [Queen's Campus, Stockton]

ECOS2141: FINANCIAL MARKETS AND RISK MANAGEMENT

Prerequisites

• All compulsory Level 1 modules.

Corequisites

• All compulsory Level 2 modules.

Excluded Combination of Modules

• None.

Aims

• To provide students with a knowledge and understanding of the economic principles governing the working of a financial system.
• to inform students of the theoretical and practical aspects of financial markets.
• to develop knowledge and understanding of key issues in the theory and practice of risk management while applying knowledge of finance and quantitative methods.
• offer the opportunity to develop key skills.

Content

• Introduction to the financial systems.
• equity markets.
• bond markets.
• foreign exchange market.
• financial intermediation.
• financial institutions.
• regulation of the financial sector.
• introduction to derivative markets.
• forward markets.
• options markets and trading strategies.
• option pricing.
• value at risk.
• futures markets and hedging strategies
• Swaps

Learning Outcomes

• Students will gain: knowledge of the way in which financial systems operate.
• understanding of the functions of financial institutions and financial markets and appreciate the role of regulation.
• knowledge and understanding of key issues in the theory and practice of risk management.

• the ability to use the principles of risk management to examine practical issues, problem solving and analysis in the areas of financial markets and risk management.

• Written Communication - through the summative project.
• Planning and Organising - observing the strict assignment deadlines; revising relevant material in preparation for examinations
• Problem Solving - e.g. by applying the necessary analytical and quantitative skills, as well as the ability to utilise concepts relating to financial markets, in preparation for exams and assignment.
• Initiative - e.g. by searching relevant literature and information in preparation of the summative assignment.
• Numeracy - e.g. by applying core mathematical and statistical skills to answer a range of exam questions.
• Computer Literacy - e.g. by word-processing the summative assignment. Downloading assignment information and notes for revision and past exam papers from DUO.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• Teaching is by lectures, seminars and support for student-centred learning. Learning takes place through attendance at lectures, preparation for and participation in seminars and private study (inlcuding student-centred learning). Formative assessment is by means of 1 set of questions in term one, 1 class test in term 2. Summative assessment is by means of an unseen written examination of 1 hour and 30 minutes duration plus one written assignment of 1500 words.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Solutions to a set of questions in term one, class test in term 2.

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University