Finance Electives

Electives

Derivatives management Security analysis and portfolio management Project appraisal and finance International Finance Financial services

Derivatives management
A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, index or security. Futures contracts, forward contracts, options, swaps and warrants are common derivatives. A futures contract, for example, is a derivative because its value is affected by the performance of the underlying contract. Functions of derivatives Risks associated Forward contract Forward trading mechanism

Futures Difference between forward and futures, Margin Currency futures, interest rate parity theorem Arbitrage Pricing- cash and carry & reverse cash and carry Options Long call, long put, short call & short put Moneyness of the option Option pricing-time value & intrinsic value Swap

Security analysis and portfolio management

Investment, speculation, gambling Risk and return Portfolio construction Portfolio management Traditional approach Modern approach Markowitz model Sharpe model Capital asset pricing model

Portfolio evaluation Sharpe performance index Treynors performance index Jensens performance index Portfolio evaluation Fundamental analysis Economic analysis Industry analysis Company analysis Technical analysis historical chart pattern Types of chart Indicators RSI, ROC

Project appraisal and finance

Project and operation Types of financing projects Equity Preference Debt Working capital advances From international markets NPV & IRR Payback period

Accounting rate of return Uniform annual equivalent Project evaluation using above methods of

Expansion and replacement projects

Cash flow, balance sheet, income statement analysis Preparing future balance sheet Special purpose vehicle Social cost benefit analysis

International Finance

International Monitory Funds Gold standard Bretton woods agreement Smithsonian agreement Jamaica agreement Nostro, Loro and Vostro accounts Direct and indirect rates & problems Bid, ask, spread Cross multiplication, Arbitraging Exchange rate theories

Financial services

Non banking financial companies, banks CAR capital adequacy ratio of NBFCs and banks Leasing and hire purchasing Mutual funds Factoring and bills discounting Credit rating

Thank you