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AI1134 Capital Markets and Financial Instruments 7.5 credits

Choose semester and course offering

Choose semester and course offering to see information from the correct course syllabus and course offering.

Headings with content from the Course syllabus AI1134 (Spring 2021–) are denoted with an asterisk ( )

Content and learning outcomes

Course contents

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.

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.

Course disposition

No information inserted

Literature and preparations

Specific prerequisites

Completed course:

Fundamentals of Residential Real Estate Finance (AI1144)

Recommended prerequisites

No information inserted


No information inserted


The Economics of Money, Banking and Financial Markets, by F.S. Mishkin, Global Edition. Pearson. We recommend the latest edition.

Examination and completion

If the course is discontinued, students may request to be examined during the following two academic years.

Grading scale

A, B, C, D, E, FX, F


  • TENA - Examination, 7.5 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

No information inserted

Opportunity to raise an approved grade via renewed examination

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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.

Further information

Course web

Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.

Course web AI1134

Offered by

ABE/Real Estate Economics and Finance

Main field of study


Education cycle

First cycle

Add-on studies

No information inserted


Han-Suck Song, 08-790 9569,