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The Economics of Financial Derivatives & Financial Engineering

Introduction to derivatives focused on economic functions as tools for hedging/risk management. Topics include: forwards, futures, swaps, options, parity conditions, binomial options pricing, Black-Scholes formula, financial engineering for risk management Value-at-Risk (VAR). Emphasis on intuition and common sense implementation of technical material. Abuses and potentials for arbitrage profits considered. Instructor: Rasiel

Private Equity

Introduces students to the process of private equity investments, including evaluating potential investments, deal structure and financing, and key drivers of value. Students will learn about a range of private investment styles, from early stage to mature investments, with a focus on acquisitions of existing mid-market firms for value enhancement utilizing various strategies. The course will include both in-class discussions and lectures from visiting speakers from the private equity world. Instructor: Forlines

Inside Hedge Funds

Background and evolution of hedge funds, their structure, and various investment strategies. An analysis of why hedge funds have become the most prolific investment vehicles in the world, and why they have become the key customer base to investment banks. There will be a range of guest lecturers from the hedge fund world that will provide a bird s-eye view into the industry. Instructor: Hughes

Economics of Education

A course in applied microeconomic policy analysis, focusing on the economic factors underlying the historical and current provision of education in the United States. Topics of interest include the private and social returns to education; the effect of scholastic inputs on student achievement (including teacher quality and class size); the valuation of school quality through house prices; and the role of incentives in increasing the efficiency with which education services are delivered.

Empirical Asset Pricing

This course develops, examines, and applies models for portfolio decisions by investors and the pricing of securities in capital markets. While developing portfolio theory, we will study the extensive empirical work that characterizes movements in security prices, evaluates alternative investment and asset pricing models, and attempts to test those models and interpret the implications of those tests. This is a research oriented course with practical implementation of quantitative methods in finance, aimed at highly motivated and technically proficient undergraduate and masters students.

Empirical Asset Pricing

This course develops, examines, and applies models for portfolio decisions by investors and the pricing of securities in capital markets. While developing portfolio theory, we will study the extensive empirical work that characterizes movements in security prices, evaluates alternative investment and asset pricing models, and attempts to test those models and interpret the implications of those tests. This is a research oriented course with practical implementation of quantitative methods in finance, aimed at highly motivated and technically proficient undergraduate and master s students.

Shakespeare and Markets

In this course, we will discuss how lessons from Shakespeare's plays can provide insight into human behavior in today's financial markets as well as other marketplaces, such as ones for ideas, politics, policy and technology. Plays will include The Tempest, Julius Caesar, As You Like It, and others. We will draw lessons about policy errors, cultural and political dislocation, regime changes, demographic conflicts etc. in current financial, political and macroeconomic environments. We will also talk about human biases in decision-making, and how these transcend cultural and historic

Understanding Financial Bubbles and Crises

Examines the similarities/differences of historical financial crises from “Tulipmania” through the Great Recession to better understand our current economic environment. Explores the regulatory changes that are enacted post-crisis and determines factors that might prevent future economic bubbles/crises. Class includes guest speakers from the NY financial community who experienced recent crises from 1987 Black Monday Crash through Credit Crisis of 2008 to provide an inside view and feel of the markets during those periods. Consent of instructor is required.

Corporate Finance Theory: Governance, Incentives and Valuation

Course uses tools of contract theory (information economics, mechanism design, and game theory) to analyze key features of corporate structure, performance, and valuation. Investigates critical interactions among stakeholders in a modern business enterprise (directors, executives, management, labor, financiers, shareholders, and regulators) in achieving goals and objectives of the corporation.

Computer Modeling

Introduction to the use of computer techniques in economic policy evaluation; policy applications to international economics, public finance and development economics; computer analysis of linearized and nonlinear models using Excel and GAMS. Students required to complete a major modeling project. Pre-requisites: ECON205D and 210D. One course / 3 units.

Course syllabi

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