FINANCE AND REAL OPTIONS

The course is divided into two parts.
Part A will explore some recurring themes in the financial management of industrial companies, such as liquidity management, hedging of exchange and interest rate risks, using derivative financial instruments. Part B will address issues related to other investment decisions, such as investment in projects or equity securities.

Part A
Exposure planning and control in non-financial companies.
Measurement and budgeting of financial risks.
Derivative instruments to hedge financial risks: forward contracts, swaps, options and combinations of options
Risk management strategies in non-financial companies.
The management of the rate risk of a bond portfolio.

Part B
Introduction.
Section I:
The intrinsic value of an asset and a business
The value of growth
The competitive advantage
The intrinsic value of an equity security
Section II:
The rules of market efficiency
Wisdom of crowds
Behavioral Finance
Sources of Mispricing
Risk and uncertainty
Section III:
The portfolio dimension
CAPM vs Value Investing
Section VI:
Tools and examples