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Finance

Visiting Students at St Edmund Hall can select from the Finance courses listed below. Unless specified, each course can be taken as either a Primary or a Secondary option.

Availability of courses will vary according to term of study. The exact content of your courses will be decided in consultation with your tutor at St Edmund Hall and may depend on what teaching resources are available at the time.

Investments (Michaelmas Term)We will be studying the risk-return trade-off and how, in competitive security markets, higher expected returns come only with greater investment risk so that in well-developed security markets there are no ‘free lunch’ or arbitrage opportunities. We will study modern portfolio theory, how to measure asset risk, how to quantify the trade-off between risk and expected return, learn techniques used to measure risk, study the implications of efficient diversification, and how diversification effects portfolio risk, as well as how portfolio risk is measured. We will apply these ideas to study the asset allocation decisions into risky asset classes such as stocks, bonds, or real estate for individuals, portfolio managers, private equity investors, and hedge funds.
Mortgage Markets (Michaelmas Term - secondary only)We will learn about the various choices available in the mortgage markets, how payments are calculated, how to compare mortgages available, and how mortgages are originated, marketed and sold to the secondary market.   We will also consider inherent problems that may arise from when it is originated to when it is packaged into securitised mortgage-backed securities.
Options, Futures & Forward Contracts (Hilary Term)The course covers futures, forwards, and options. Students will learn about the classic arbitrage bounds for option prices, option replication, options pricing and the binomial option pricing model. In addition, we will study the no-arbitrage pricing theory for forward contracts and discuss its relevance as an approximation to the pricing of futures contracts.
Corporate Finance (Trinity Term)Students will learn about topics covering capital budgeting, efficient markets, corporate governance, and capital structure.