ST TUD DY G GUID DE - Skema Business School

Financial mathematics
15 hours – 2 credits
Financial mathematic numerous applications have become vital to the day to day functioning of the
world's financial institutions. As a consequence, a solid command of the principles and techniques of
quantitative finance is essential for a responsible approach to the trading, asset management, and
risk control of complicated financial positions. The class is designed to ensure that the mathematic
building blocks for finance are mastered by the students.
Banking relations
30 hours – 4 credits
This course is designed to understand the relationships between banks and households, banks and
firms, banks and markets, banks and supervisors. The student is expected to understand :
‐why banks exist and how indirect financing (banks) differs from direct financing (markets);
‐how banks and markets are complementary rather than perfect substitutes;
‐the structure of bank loan contracts;
‐the risky nature of the bank deposit contract;
‐how to price fair loan risk premiums;
‐why banks take risky position;
‐how to regulate the banking system
Corporate risk management
30 hours – 4 credits
This course focuses on how corporations manage various financial risks. It provides a basic overview
of options and futures and then goes on to assess the financial risks facing large multinational
corporations such as foreign exchange risk and interest rate risk. It then discusses the hedging
instruments available and their suitability in relation to the risks identified.
Intangible asset valuation
15 hours – 2 credits
This course is designed to recognise the importance of intangibles in today’s changing economies.
The development of modern performance measures in organisations such as the balanced scorecard
is an example of an attempt to measure intangible assets which carry as much importance as
tangibles.
The question of the difficulties faced in putting values on these intangibles will be the cornerstone of
the delivery of the elective.
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