Financial Markets

Lecture Notes

Lecture Slides 1

Lecture Slides 1 covers Part 1: Introduction in the textbook.

[Lecture Slides 2], [Lecture 2 Python Code]

Lecture Slides 2 covers Chapter 4: The Meaning of Interest Rates

[Lecture Slides 3]

Lecture Slides 3 covers Chapter 5: The Bahavior of Interest Rates

[Lecture Slides 4]

Lecture Slides 4 covers Chapter 6: The Risk and Term Structure of Interest Rates

[Lecture Slides 5]

Lecture Slides 5 covers Chapter 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

[Lecture Slides 6]

Lecture Slides 6 covers Chapter 8: An Economic Analysis of Financial Structure

[Lecture Slides 7]

Lecture Slides 7 covers Chapter 9 & Chapter 12

[Lecture Slides 8]

Lecture Slides 8 covers Chapter 11: The Money Markets

[Lecture Slides 9]

Lecture Slides 9 covers Chapter 12: The Bond Markets, [Lecture 9 Math Note]

[Lecture Sildes 10]

Lecture Slides 10 covers Chapter 13: The Stock Market, [Lecture 10 Math Note]

[Lecture Slides 11]

Lecture Slides 11 covers Chapter 14: The Mortgage Market

[Lecture Slides 12]

Lecture Slides 12 covers Chapter 15: The Foreign Exchange Market

[Lecture Slides 13]

Lecture Slides 13 covers Chapter 16: The International Financial System

[Lecture Slides 14]

Lecture Slides 14 covers Chapter 24: Hedging with Financial Derivatives

Homework

[Homework 1]

[Homework 2]

[Homework 3]

Class Requirements

I. Homework (30%)

You will have 3-4 HW assignments throughout this semester.

HW can be done in groups but each of you need to turn in your own HW.

HW deadlines are HARD deadlines. If you do not have a good reason (e.g. medical emergency), I will deduct 10-50 points based on how late your HW is turned in.

II. Final Exam (70%)

I may curve your score based on the performance of the whole class.

Relax, I will not lower your score unless you are caught cheating in the exam.