Primer 2: Finance
The Finance Primer covers the fundamental concepts on financial products (value, P&L, fixed income, derivatives) which underpin the quantitative finance courses
In particular, the Finance Primer covers the following topics:- Finance foundations: Value, transaction value, position of financial instruments; cashflows; market microstructure
- Peformance foundations for single instrument positions: payoff, holding and trading P&L, return
- Asset classes: equity, fixed income, derivatives
- Introduction to credit risk
Syllabus
The course covers in depth the Finance topics in the Lab.Foundations
• Key notation tenets
• Instrument value
• Cashflows
• Cashflow and value jumps
Performance definitions
• Holding P&L of a position
• Implementation shortfall
• Path analysis
Asset classes
• Equities
• Fixed income
• Derivatives
• Commodities
• Credit
• Forein exchange