The programme provides students with the analytical tools needed to understand how financial markets operate, how financial asset prices are determined, and the role played by financial intermediaries. More specifically, students will learn how investors choose their portfolios and how these choices determine the equilibrium prices of assets.
Students will also learn how to apply discrete-time and continuous-time techniques to derivative pricing and how to use these instruments for hedging or speculative purposes. In addition, they will analyse the role of liquidity in securities markets and learn how trading is organised and regulated, as well as how the trading process affects asset price formation.
Finally, students will study how banking crises arise and spread to the real economy, what regulatory authorities can do to prevent them, and how the “Fintech revolution” is reshaping the banking sector.
This programme is part of a series that also includes two other programmes in Economics and Finance: “Labour, Development and Policy Evaluation” and “Market Analysis”. The programme is designed in collaboration with the Department of Economics and Statistics (DISES) of the University of Naples Federico II.
What you will learn
- Key functions performed by financial markets
- Theoretical foundations of asset pricing
- Key techniques for derivative pricing
- The role of liquidity in financial markets and its main determinants
- Organisation and regulation of securities trading
- The role of algorithmic and high-frequency trading in securities markets
- Skills to operate in equity, bond, and derivatives markets
- Threats to financial stability and prudential banking regulation
Corsi
Asset pricing I
It studies the main functions of financial markets and portfolio choices, and how these influence saving and investment decisions.
It explores how to identify risk and how risk can affect the equilibrium prices of financial assets.
It explores derivative pricing models and provides an in-depth understanding of financial markets, asset pricing, arbitrage, risk, and return.
It examines price formation and liquidity in equity markets, and explores the main determinants of market depth and securities trading.
It examines the role played by financial intermediaries, focusing on financial investments and the sources of risk associated with intermediation activities.
