PrEMAS 2 - Corporate Finance and Quantitative Finance

This course gives an introduction in Quantitative and Corporate Finance. Participants will acquire knowledge of widely used derivates in the balance sheet management of pension funds and insurers, like futures and swaps.

PrEMAS 2 - Corporate Finance and Quantitative Finance

Subsequently, different option contracts (European and American call options) and the option valuation method based on binomial trees will be introduced. This knowledge forms the starting point of the standard model of quantitative finance; the Black-Scholes-Merton model. The Corporate Finance part of the course addresses questions such as: which investment projects are optimal to undertake? And how should firms and their investment projects be financed? To this end, topics as capital structure, cost of capital, investment return measurement and dividend policies are covered.


Entry requirements

The module PrEMAS 1: Mathematical Methods for Actuaries or equivalent.


Literature

Mandatory literature to be purchased by the student:

Quantiative Finance

  • J.C. Hull. Options, Futures and Other Derivatives, 11th edition. Pearson Education ltd, 2021. ISBN: 9781292410654 (the 11th edition is leading, however, earlier editions also suffice)


Corporate Finance

  • Corporate Finance, Fifth Edition, Jonathan Berk / Peter DeMarzo - Pearson Education Limited, ISBN: 9781292304151


Teachers

  • Dr. Gerrit Jan van den Brink RA - Corporate Finance
  • Dr. Koos Gubbels AAG - Quantitative Finance


Important to know

  • Lectures start on Monday 8 January 2024 from 18.00-21.00 with Corporate Finance. Lectures for Quantitative Finance start on 26 February 2024. The complete schedule for lectures and exams will be published in the group page which you can access after enrollment.
  • Exams are planned on the following dates:
    - exam CF: 26 February 2024
    - resit CF: 25 March 2024
    - exam QF: 13 May 2024
    - resit QF: 17 June 2024
    Please note that these dates are preliminary
  • The first 7 lectures are dedicated to Corporate Finance, the remaining 8 lectures to Quantitative Financee.
  • The costs for this module are € 3.575.