Welcome to Prime Academy Delhi

The Financial Economics – I Course for BA (Hons) Economics Semester V, Delhi University has been taught by Mr. Dheeraj Suri. The Video Lectures are based upon the books prescribed by the University of Delhi. The Duration of Video Lectures is approximately 40 Hours.

Course Fee : Rs. 7,000

Once You get the access you need to login and download our APP and all the lectures from your login account and play in your device.

You will Get

• Full Course Video Lectures
• Complete Study Material (PDF Notes) which includes Concepts, Previous Year Questions, Numerical Questions, MCQ’s and Important Questions
• Online Discussion Forum to Post Your Queries to Discuss with Faculty & other fellow Students
• Live online Doubts Sessions for resolution of Doubts
• Mock Tests at the Website
• Video Lectures Cover Theory Portions Exchaustively + Complete Solutions of Back Questions of readings + Solutions of Previous Years Papers + Large Number of Numericals

On Payment of Fee we will create your account on our website & you need to login and download all the lectures & our APP through that login account

Payment Details

To purchase any course you need to transfer the amount either through Google Pay or PhonePe at 9811261671 or Paytm at 9899192027 or Transfer through net banking IMPS into the following account

After transfer update us with payment details through Whatsapp at +91 9899192027

Demo Lectures

Click Here for Reading List of Financial Economics

Course Content of Our Video Lectures

Lectures are as per the Latest Syllabus for 2023

Unit – I : Investment Theory & Portfolio Analysis

Unit – 2 : CAPM

Unit – 3 : Options and Derivatives

End of Syllabus

Syllabus for Financial Economics as prescribed by University of Delhi

HE-54-Financial-Economics-Syllabus

Course Description

Financial Economics (HE54)

Discipline Specific Elective (DSE) Credit: 6

Course Objective

This course provides a strong theoretical foundation and an economic framework to understand the world of modern finance. Major topics in the course include: time value of money; fixed-income securities; bond pricing and the term structure of interest rates; portfolio theory and pricing models such as the capital asset pricing model; hedging, speculation, and arbitrage; futures and options contracts; determination of forward and futures prices; trading strategies involving options; binomial trees; and the Black-Scholes-Merton option pricing model

Course Learning Outcomes

Students acquire extensive theoretical knowledge in portfolio risk management, capital asset pricing, and the operation of financial derivatives. The course familiarises students with the terms and concepts related to financial markets and helps them comprehend business news/articles better. The course also helps to enhance a student’s understanding of real life investment decisions. The course has a strong employability quotient given the relatively high demand for skilled experts in the financial sector.

Unit 1

Investment theory and portfolio analysis: deterministic cash flow streams; basic theory of interest; discounting and present value; internal rate of return; evaluation criteria; fixed-income securities; bond prices and yields; interest rate sensitivity and duration; immunisation; the term structure of interest rates; yield curves; spot rates and forward rates

Unit 2

Single period random cash flows; mean-variance portfolio theory; random asset returns; portfolios of assets; portfolio mean and variance; feasible combinations of mean and variance; mean-variance portfolio analysis: the Markowitz model and the two-fund theorem; risk-free assets and the one-fund theorem. CAPM: the capital market line; the capital asset pricing model; the beta of an asset and of a portfolio; security market line; use of the CAPM model in investment analysis and as a pricing formula; the CAPM as a factor model, arbitrage pricing theory

Unit 3

Futures, options and other derivatives: introduction to derivatives and options; forward and futures contracts; options; other derivatives; the use of futures for hedging, stock index futures; forward and futures prices; interest rate futures and duration-based hedging strategies, option markets; call and put options; factors affecting option prices; put-call parity; option trading strategies: spreads; straddles; strips and straps; strangles; the principle of arbitrage; discrete processes and the binomial tree model; risk neutral valuation; stochastic process (continuous variable, continuous time), the Markov property, Itô’s lemma; the idea underlying the Black Scholes-Merton (BSM) differential equation, BSM pricing formulas; the Greek letters

References

1. Brealey, R., Myers, S., Allen, F., Mohanty, P. (2013). Principles of corporate finance, 10th ed. Tata McGraw-Hill.
2. Hull, J., Basu, B. (2017). Options, futures, and other derivatives, 9th ed. Pearson Education.
3. Luenberger, D. (2013). Investment science. Oxford University Press.