Elective Courses - Finance

Options & Futures
This course focuses on valuing options, forwards and futures. Valuation of options on stocks, currencies, stock indices and futures contracts using binomial trees and the Black-Scholes model will also be covered. Other topics include implied volatility, volatility estimation, Greek letters and hedging option risk. Theoretical treatment will be supplemented with numerous numerical examples. See Session-Wise Topics/Readings below for session-by-session learning objectives.
Corporate Control, Merger & Acquisition
Multi-business corporations are prominent in the economy, yet the logic behind their success or failure – corporate strategy – remains unclear. In addition, a principal mode for implementing corporate strategy, mergers and acquisitions (M&As), has had a mixed record of success. This course begins with explaining the nature and logic of corporate strategy – how firms and senior managers make decisions on scope, and how it is distinct from business level strategy. The issue of why firms diversify, relatedness and unrelatedness in diversification, and understanding the principles that underlie successful diversification make up the first part of the course. The second part of the course focuses on mergers and acquisitions, which research shows only succeed about half of the time. It provides a deep understanding factor explaining differential success and how managers can develop more successful growth strategies.
Portfolio Management
In this course, we will discuss security pricing, portfolio optimization and the fundamental principles of the trade-off between risk and return, with applications focused on equity portfolios. Through in-class discussion, cases and various assignments, you will learn to choose an optimal portfolio of risky assets and allocating investible wealth across asset classes, to apply factor models of security returns, and to analyze investment performance. You will also understand a number of stylized facts about the financial markets. The emphasis is on understanding the principles and applying them through problem solving.
Capital Raising Strategies in Corporations
This is an advanced course in corporate finance, focusing on the interface of firms with financial markets. The course will examine the capital raising and financing strategies of firms at different stages in their life cycles. On most occasions, we take the perspective of the corporate treasurer responsible for the financing activity. However, we will often look at the same transaction from the complementary viewpoints of the participating financial intermediary such as an investment bank, and the perspective of an existing or new investor in the issuing firm. We cover a wide range of capital market transactions ranging from simple to complex instruments, including initial public offerings by young firms to bank debt, public debt issues, and financing instruments that combine financing with an element of a risk management strategy.