The aim of the course is to provide a mathematical account of the arbitrage theory of financial derivatives. A short treatment of stochastic differential equations and the It\^o calculus will be presented, and will include the Feynman-Kac formula, and the Kolmogorov equations. Risk neutral valuation formulas and martingale measures will be introduced through Feynman-Kac representations. The course will cover pricing and hedging problems in complete as well as incomplete markets. Barrier options, options on dividend-paying assets, as well as currency markets will be studied. Interest rate theory will include short rate models and the Heath-Jarrow-Morton approach to forward rate models. A self-contained treatment of stochastic optimal control theory will be used to study optimal consumption/investment problems.
Many courses on investments have their focus on equity marketsand cover bond markets only briefly, if at all. However, by sheervolume bond markets are much larger than equity markets, and the2007-2008 financial crisis had its origin in the (structured) bondmarket. This course is devoted entirely to bond markets, bond portfoliomanagement, and the measurement and management of the risksinvolved. It introduces the institutional features of primary andsecondary bond markets, discusses the valuation of both standardand non-standard bonds, and introduces and explains the termstructure of interest rates. It further addresses issues in riskmeasurement and management (both interest and credit risk) anddiscusses issues in bond portfolio management. The last chapterdiscusses asset-backed securities and relates this discussion tothe 2007-2008 financial crisis.The course's development of personalcompetences: The course helps students to develop their presentation skills.They will have to solve problems and present the solutions inclass.
WWDR1 is targeted to all those involved in the formulation and implementation of water-related policies and investment strategies as well as to professionals at all levels. Although it offers a broad global picture it focuses particularly on the situation in developing countries where the need for better infrastructure and governance is highest. With this report WWAP is aiming to show where systems are failing and to provide the information needed for efficient and effective capacity-building throughout the world. This 1st edition of the WWDR laid the foundation for subsequent editions concentrating essentially on evaluating what progress has been made and not made since the Rio Summit and on developing effective assessment methodologies. The Report encompasses a broad range of components focusing on human stewardship of freshwater that complex aggregation of policies legislation social programmes economic approaches and management strategies through which we seek to achieve water sustainability. 2b1af7f3a8