Additional Notes
Homework
• Homework’s are due at the beginning of class.
• Late homework will not be accepted.
• All work has to be done independently.
• Submit a hard copy of your homework with your name, Section#, Sequence #, SID, and Homework # on it.
• E-mail submission is not allowed.
• All homework assignments are to be done individually.
• Students handing in similar work will both receive a 0 and face possible disciplinary actions.

Exams
• The format for the exams is generally (but NOT always) as follows: general definitions, Multiple-choice, and short essay questions.
• To make sure you pass the exams, you should do the assignments by yourself.
• Grades will not be given out via e-mail


Attendance
• Excellent attendance is expected.
• YU policy requires the faculty member to assign ZERO grade (35) if a student misses 10% of the classes that are not excused.
• Sign-in sheets will be circulated.
• If you miss class, it is your responsibility to find out about any announcements or assignments you may have missed.

Course Objectives
• Describe the types of financial markets that accommodate various transactions, describe the role of financial institutions within financial markets, and identify the types of financial institutions that facilitate transactions in financial markets.
•Explaining how the loanable funds theory can be used to understand why interest rates change, identifying the most relevant factors that affect interest rate movements, and explaining how to forecast interest rates.
• Demonstrate how prices of bonds and other debt securities are valued and are influenced by interest rate movements. Also explaining how sensitivity of bond prices to interest rate is dependent on particular bond characteristics.
• Demonstrate how bond prices can be forecasted, and how bond portfolio values be forecasted.
• Identifying the most popular money market securities, explaining how money markets are used by institutional investors, and explaining how money markets have become globalized.
• Providing a background on bonds, explain the risks of bonds, and explain how bond markets have are used by institutional investors.
• To understand how stock exchanges facilitate the trading of stock, how stock markets are used by financial institutions.
• Describe valuation models used to value stock, and identify the economic factors that affect stock prices.
• To understand the concepts of futures, forwards, and options contracts and the main differences among them.
• Explain how financial futures contracts are valued, and how interest rate contracts are used to speculate or hedge, based on anticipated stock price movements.
• Explain how stock options are used by financial institutions to speculate and to hedge their security portfolios.


Teaching & Learning Methods
• Class lectures, lecture notes, homework assignments, are designed to achieve the course objectives.
• You should read the assigned chapters before class, complete assignments on time, participate in class and do whatever it takes you to grasp this material. Ask questions. Ask lots of questions.
• You are responsible for all material covered in the class.
• Communicate any concerns or issues as soon as practical either in class or at Office.


Learning Outcomes
Upon successful completion of this course, students will have the ability to explain the role of financial markets and institutions, how interest rates are determined and their effect on dons and securities, and understanding the concepts of hedging instruments.

The expected achieved outcome
• Understanding the role of financial markets.
• Understanding the financial market efficiency.
• Determining the difference between the role of depository and non depository institutions
• Knowing how interest rates are determined using the loanable fund theory.
• Determining how interest rates are determined by Fisher Effect.
• Determining the relationship between interest rates and security prices.
• Determining the sensitivity of bond prices to changes in the required rate of return.
• Identifying the different money markets instruments.
• Discussing all different types of bonds.
• Evaluating the risks involved in investment in bonds.
• Identifying the main characteristics of common stocks.
• Explaining the differences between common stocks and preferred stocks.
• Determining the factors that affect stock price movements.
• Understanding the concept of stock market efficiency.
• Identifying the characteristics of Futures, Forwards, Options.
• Explaining how stock options are used to speculate.