Stock valuation, option valuation, strategies with options and futures, the efficient market hypothesis, the foreign exchange market, central banks, monetary policy goals and tools, transmission mechanisms of monetary policy.
AI1134 Capital Markets and Financial Instruments 7.5 credits
Choose semester and course offering
Choose semester and course offering to see current information and more about the course, such as course syllabus, study period, and application information.
Application
For course offering
Spring 2025 Start 14 Jan 2025 programme students
Application code
60504
Content and learning outcomes
Course contents
Intended learning outcomes
Upon completion of the course, course participant should be able to
- Apply common stock and option valuation methods.
- Describe and analyze different investment strategies with stocks and financial derivatives.
- Explain the meaning of the efficient market hypothesis, and give examples of arguments and evidence for and against this hypothesis.
- Analyze how exchange rates are determined.
- Analyze possible effects of monetary policy interventions.
Literature and preparations
Specific prerequisites
Completed course:
AI1144 Fundamentals of Residential Real Estate Finance
Recommended prerequisites
Equipment
Literature
The Economics of Money, Banking and Financial Markets, by F.S. Mishkin, Global Edition. Pearson. We recommend the latest edition.
The Economics of Money, Banking and Financial Markets, av F. S. Mishkin, Global edition. Pearson.
Corporate Finance, Jonathan Berk and Peter DeMarzo, Pearson.
Examination and completion
If the course is discontinued, students may request to be examined during the following two academic years.
Grading scale
Examination
- PRO1 - Project, 2.0 credits, grading scale: P, F
- TENB - Written exam, 5.5 credits, grading scale: A, B, C, D, E, FX, F
Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.
The examiner may apply another examination format when re-examining individual students.
Opportunity to complete the requirements via supplementary examination
Opportunity to raise an approved grade via renewed examination
Examiner
Ethical approach
- All members of a group are responsible for the group's work.
- In any assessment, every student shall honestly disclose any help received and sources used.
- In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.