Universidad Pública de Navarra - Nafarroako Univertsitate Publikoa

Module/Subject matter

Basic Finance.

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Descriptors

Financial System. Interbank Markets. Bond Market. Equity Market. Foreign Exchange. Derivatives.

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General proficiencies

GP03 Oral and written communication

GP05 Developing software knowledge applied to the corresponding subject

GP06 Ability to analyze and seek information from various sources

GP07 Solving problems skills

GP08 Decision making skills

GP09 Capacity for teamwork

GP15 Ethic behavior in the job

GP17 Autonomous learning skills

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Specific proficiencies

SP01 Understand economic institutions and implementing resulting theoretical or formal representations of how the economy works

SP02 Identify relevant economic information and its content

SP03 Recognize information from data in a professional way

SP03 Derive data unrecognizable relevant information by non-professionals

SP04 Applying professional criteria based on the management of technical tools to the analysis of business problems

SP05 Ability to create reports about companies and markets

SP12 Plan, organize and control projects in the various functional areas of the company

SP15 To understand the financial markets, their structure, key players and products

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Methodology

Through this course we follow diverse teaching-learning methodologies.

Lectures.

Practical computer-based sessions.

Individual assignments.

Case discussions.

Group assignments. 

Search and filtering internet-based information.

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Languages

This course is taught in English.

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Evaluation

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Agenda

UNIT 1: INTRODUCTION TO THE FINANCIAL SYSTEM.

1.1 Economic units with surplus and deficit. The role of markets and agents. The financial system.

1.2 Financial Assets.

1.3 Financial Intermediaries: Brokers and Dealers.

1.4 Financial Markets: Definition and Characteristics.

1.5 Overview of Financial Markets.  

UNIDAD 2: THE INTERBANK MARKET.

2.1 Transactions between the ECB and Financial Institutions.

2.1.1 The ECB's Monetary Policy Instruments

2.1.2 Transactions between the ECB and Financial Institutions.

2.2 Transactions between financial institutions.

2.2.1 Deposit Markets.

2.2.2 Other markets (FRAs, Foreign Exchange markets¿).

UNIDAD 3: THE BOND MARKET.

3.1 Corporate Bonds Market.

3.1.1 Short-Term Assets.

3.1.2 Long-Term Assets.

3.1.3 Markets (AIAF, SEND, MARF...).

3.1.4 Securitization.

3.2 Treasury Bonds Markets.

3.2.1 Treasury Bonds and Notes.

3.2.2 Government (Treasury) Securities Auctions.

3.2.3 Classification of Operations.

3.2.4 Strips.

3.3 Term Structure of Interest Rates.  

UNIDAD 4: THE EQUITY MARKET.

4.1 The Primary Market.

4.2 The Secondary Market.

4.3 Equity Issuance and Public Offerings

4.4 Stock Markets Intermediaries. 

4.5 Stock Market Indexes. 

4.6 Other Securities Traded in Stock Markets.   

UNIDAD 5: THE FOREIGN EXCHANGE MARKET.

5.1 Foreign Currency: Definition and negotiation.

5.2 The Spot and the Forward Markets.

5.3 Direct and Cross-rate Quotations

5.4 International Parity Conditions.

UNIDAD 6: THE DERIVATIVE MARKET.

6.1 Forwards and Future Markets. 

6.1.1 Futures: Markets and Securities.

6.1.2 Forwards, FRAs and Swaps.

6.1.3 Strategies with Forwards and Futures. 

6.2 Options

6.2.1 Options: Definition and Classification.  

6.2.2 Determinants of options pricing. 

6.2.3 Strategies with Options. 

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Bibliography

Access the bibliography that your professor has requested from the Library.

Basic Bibliography:

- Bodie, Z., Kane, A, and Marcus, A. Essentials of Investment, McGraw Hill, 11th Edition. 2019.

- Moffet, M., Stonehill, A., Eiteman, D. Fundamentals of Multinational Finance Global Edition, Pearson, 5th Edition. 2016.

Complementary Bibliography:

- Mishkin, F.S. The Economics of Money, Banking, and Financial Markets. Pearson. 2016.

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Location

Aulario UPNA.

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