Fundamentals of Financial Modeling

Students should have a basic background of corporate finance, investments and econometrics. Besides, knowledge of using EXCEL is necessary. Knowing other statistical software (e.g., EVIEWS) is a plus.

During the lectures students will gain essential technical knowledge in Excel and how to use Financial Modeling approaches within their academic and professional career.

By the end of the course students will achieve the following intended learning outcomes:

• Students will be able to analyze the data of financial markets using advanced Excel program.
• Students will deepen their knowledge on different financial and commodity markets by exploring latest articles.
• Students will demonstrate knowledge of such important concepts like portfolio modeling, event studies, etc.
• Students will be able to solve problems related to theoretical models.

PPT slides are the most important materials to understand the course. Students are also strongly recommended to go through the reference book. The referred book (see below) has other important chapters which are beyond the scope of this course. Interested students can go through these chapters to deepen their knowledge on financial modeling. The referred book can be downloaded from the course moodle.

Reference book:
Benninga, S.: Financial Modeling. 4th Edition.

Other important book(s):
Hull, John C.: Options, Futures, and Other Derivatives. Seventh, eighth or more recent edition.

Students are also advised to search for latest articles in the field of empirical finance.

• The aim of the lectures is to discuss and clarify the most important methods used in the field of financial modeling.
• Understanding the EXCEL calculations receive special attention during the lectures.
• Students are also advised to get prepared for the lectures so that they understand the topics properly. Such preparations make the course more interesting.
• There will be two sessions allocated to guest lectures.
• All the assignments along with important instructions will be uploaded in Moodle.
• Each assignment will have a deadline.
• The assignments should be done individually. However, if needed, students can ask for help from their colleagues.
• Since the grading depends only on these assignments, copied works will be handled seriously.
• Late submissions are strongly discouraged. In fact, students are not allowed for late submissions (except for special cases). It will reduce the grade significantly.

RIGHT TO PARTICIPATE

Master’s students in Finance