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