Bachelor of Arts (BA) - The University of Hong Kong

139ECON3108.Selected topics in price theory (6 credits)Alternative meanings of economic efficiency, the specification of constraints for hypothesis testing, theproblem of social cost, the dissipation of rent, the theory of the firm and the state, and/or other topicsselected by the lecturer(s).Prerequisites: ECON2101 or ECON2113 and ECON2102 or ECON2114.Assessment: coursework 40%, examination 60%.FINA0102.Financial markets and institutions (6 credits)This course discusses developed and developing financial markets, institutional and regulatoryframeworks, recent developments in securitization, internationalization of markets. The generalequilibrium of asset markets, the efficient market hypothesis, the behaviour of asset prices, and termstructure of interest rates will be discussed. The markets to be covered include: money markets, bondmarkets, equity (stock) market, forward markets, futures markets, forex markets, insurance markets andothers.Prerequisite: BUSI0016/FINA1002 Introduction to finance.Assessment: coursework 40%, examination 60%.FINA0103.International banking (6 credits)Nature of international banking. Comparison with domestic banking. Jurisdiction and regulatoryframework: the Basle Concordat. Xeno-currency markets and international banking. Internationalfinancing techniques: loan syndication, project financing, NIFs, RUFs etc. Risk exposure and control:sovereign risk, country risk, exchange risk, interest risk and credit risk. Management and strategies ofinternational banks. 'National treatment' and financial centres.Assessment: coursework 40%, examination 60%.FINA0104.Management of commercial banks (6 credits)This course introduces basic bank management techniques that include: asset and liability management,liquidity and reserve management, credit analysis, loan pricing and off-balance-sheet banking.Regulatory issues of commercial banks are also discussed.Assessment: coursework 60%, examination 40%.FINA0105.International financial management (6 credits)The international corporation and its environment. Forex markets. Forex risk management.International working capital management. International treasury management. Foreign investmentand capital budgeting. International financial markets: Euro-currency, Euro-bond, and Euro-notesmarkets.Assessment: coursework 50%, examination 50%.FINA0301.Derivative securities (6 credits)To provide a comprehensive analysis of the properties of options and futures and to offer a theoreticalframework within which all derivatives can be valued and hedged. Topics covered: simple arbitragerelationships for forward and futures contracts, hedging and basis risk, stock index futures, swaps,trading strategies involving options, valuation of options using a binomial model and the Black-Scholesanalysis, options on interest rates, stock indices, currencies and futures, and exotic option.Prerequisite: BUSI0016/FINA1002 Introduction to finance.Assessment: coursework 40%, examination 60%.