Course Code and Name: FINA3010 – Financial Markets

Course Objectives:

1.          Understand the structure and practice of financial markets and the characteristics of financial instruments

2.          Understand interest rates and exchange rates and their inter-relationship as well as their impact on financial markets

3.          Formulate speculation, hedging or arbitrage strategy using different financial instruments under different situation

Course Outcomes:

1.          Able to read and analyze data and information provided in financial markets and comment on the performance of financial instruments

2.          Able to appreciate the causal relationship of various factors on financial markets and instruments

3.          Aware of the rules, regulation and general practice in financial markets, particularly Hong Kong financial markets

4.          Competent to evaluate the appropriateness and limitation of financial instruments/strategy under different financial and/or economic situation

5.          Competent to identify different kinds of risk exposure, and possibly the tools and costs of hedging them

6.          Competent to identify mispricing and reap arbitrage opportunities

Programme Outcomes:

(P1)    The ability to apply knowledge of mathematics, science, and engineering appropriate to the degree discipline (K/S)

(P2)    The ability to design and conduct experiments, as well as to analyze and interpret data (K/S)

(P3)    The ability to design a system, component, or process to meet desired needs within realistic constraints, such as economic, environmental, social, political, ethical, health and safety, manufacturability and sustainability (K/S)

(P4)    The ability to function in multi-disciplinary teams (S/V)

(P5)    The ability to identify, formulate, and solve engineering problems (K/S)

(P6)    The understanding of professional and ethical responsibility (V)

(P7)    The ability to communicate effectively (S)

(P8)    The ability to understand the impact of engineering solutions in a global and societal context, especially the importance of health, safety and environmental considerations to both workers and the general public (V)

(P9)    The ability to recognize the need for, and to engage in life-long learning (V)

(P10) The ability to stay abreast of contemporary issues (S/V)

(P11) The ability to use the techniques, skills, and modern engineering tools necessary for engineering practice appropriate to the degree discipline (K/S)

(P12) The ability to use the computer/IT tools relevant to the discipline along with an understanding of their processes and limitations (K/S/V)

(P13) The ability to apply the skills relevant to the discipline of operations research and information technology and their applications in engineering and managerial decision making, especially in financial services, logistics and supply chain management, business information systems, and service engineering and management (K/S)

 

K = Knowledge outcomes

S = Skills outcomes

V = Values and attitude outcomes

Weights (in %):

P1

P2

P3

P4

P5

P6

P7

P8

P9

P10

P11

P12

P13

Other

Total

20%

15%

 

10%

30%

 

10%

 

 

15%

 

 

 

 

100%

Course Outcome(s) is/are measurable or not: Yes  /  Yes (Partial) /  No   (Please choose).     If Yes, please suggest ways to measure:

This course contributes to:

(P1) by teaching pricing/valuation models and parity theories, etc. and giving students practice in applying them. It could be measured by assignments and test/exam questions.

(P2) by reference to market quotations and information. It could be measured by in-class discussion, assignments and test/exam questions.

(P4) by allowing students to work in groups. It could be measured by group presentation.

(P5) by teaching elements of speculation, hedging and arbitrage, and giving students practice in applying them. It could be measured by in-class discussion, assignments, group presentation, and test/exam questions.

(P7) by encouraging students to participate in class and requiring students to work on group presentation. It could be measured by their clarity/logic of their explanation for in-class discussion, and their quality of work on both written and oral presentation for their group presentation.

(P10) by drawing students’ attention to latest financial news and on contemporary financial issues (such as newly developed financial products and the recent financial tsunami). It could be measured by in-class discussion, group presentation and test/exam questions.