LernappMethoden
FT · 6 ECTS · Englisch

Finance Theory

Klausur in der Prüfungsphase 15.02.–26.02. (Termin offen)
 
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1. Hälfte nur Vorlesungen (bis 09.12.), 2. Hälfte nur Übungen (ab 16.12.).

Themen (4)

  • Compounding, discounting and present valueNeu
  • Net present value and internal rate of returnNeu
  • Annuities and perpetuities (constant and growing)Neu
  • Law of one price, arbitrage and value additivityNeu

Vorlesungen (1)

VL 02 · Mi, 21. Okt. · 11 Folien

The Value of Time

Treats the financial system as a time machine under perfect, risk-free markets. Returns split into a cash and a capital-gain component; compounding gives future values, discounting at the opportunity cost of capital gives present values (DCF). NPV and IRR are introduced as investment criteria. The law of one price follows from the absence of arbitrage and implies value additivity, also used for foreign-currency cash flows. Closed-form values for constant and growing annuities and perpetuities are derived via replication and the LOOP.

Compounding, discounting and present valueNet present value and internal rate of returnLaw of one price, arbitrage and value additivityAnnuities and perpetuities (constant and growing)