Matematica Generale, Matematica Finanziaria.
Knowledge of pricing models for key financial instruments with specific focus on equity instruments.
Mathematical introduction. Description of financial markets. Interest rate determination in equilibrium. Arbitrage opportunities. The mean-variance model and its critiques. Arbitrage Pricing Theory. Basics of option theory.
Course notes. For the mathematical introduction: Barozzi-Corradi Corso di Matematica per le scienze economiche - Il Mulino - Capitolo 8.
Classroom lessons and seminars
Written exam; intermediate midterm exam.
The exams aim to test knowledge of the theory presented, also through numerical exercises.