Investment Banking

This module provides an overview of mergers and acquisitions from the point of view of an industry practitioner who has worked in both M&A advisory (Corporate Finance Advisory) and Merger Arbitrage Trading. The module explains the role of Corporate Finance practitioners and the modelling tools they use to value companies and advise clients. The module also explains the role in the markets for traders and portfolio managers at hedge funds and other asset management firms who specialise in trading announced merger transactions and other corporate actions. The purpose of this module is to provide students with an overview of the theory and practice of pricing and hedging derivative securities. These include forward and futures contracts, swaps, and many different types of options. This module covers diverse areas of derivatives, such as equity and index derivatives, foreign currency derivatives and commodity derivatives, as well as interest rate derivatives. This module also addresses the issue of how to incorporate credit risk into the pricing and risk management of derivatives. All the relevant concepts are discussed based on the discrete time binomial model and the continuous time Black­Scholes model. The extensions of the Black­Scholes model are also discussed.