13 July 2018
Corporate finance from a derivative perspective is at the very heart of this course. In a first step, participants get to know the pricing of state-contingent claims in a quite general state-preference framework with no-arbitrage. Next, the Cox-Ross-Rubinstein (1979) binomial option pricing model is developed and the Black-Scholes (1973) model for the pricing of European-type stock options is introduced. In a third step, the insights about financial options are applied to the analysis of a corporation along Merton’s (1974) firm-value model. Thereby the participants develop a notion of credit-risk and understand how to price credit risky corporate debt. Finally, the participants learn to apply the binomial model to the pricing of real options. Put differently, they get to know multi-period capital budgeting under uncertainty in the presence of managerial flexibility. Tutorials help the participants to develop the necessary skills in order to apply the developed pricing approaches themselves.
Dr. K. L. Keiber
This course is part of the summer program "The Liberal Order in Crisis: Authoritarian, Radical, and Populist Challenges to Democracy in Europe"
EUR 1970: including two courses, accommodation, lunch on weekdays, transaction costs, transportation within Frankfurt (Oder), extracurricular activities and taxes
EUR 400: The second fee is the tuition fee for students from non-partner universities of the European University Viadrina. Please contact your international office and the organizing team to check for possible tuition waivers.