Assignments & Exercises
Exercise sessions will be held on Thursdays at 14.15 - 16.00 in lecture hall U4, starting at 12.09.2019. The topics of the exercise sessions are those presented in the lectures of the same week.
During these sessions, the course assistant demonstrates solutions to problems listed in the exercise material and the students will also present exercises that are related to the Assignments. The students are awarded 1 point per each exercise they are willing to present, and the exercises that will be presented by the students will be announced for each exercise session.
The students are awarded 6 points per assignment, where 4 points come from the correctness of the solution and 2 points from the quality of the solution. The submission should be easily understandable (do not submit 1000 lines of source code of an obscure programming language) and contain the steps you have taken to solve the problem.
The total points that will grant points for the exam will consist of
- 25%, that is, 2 * 8 = 16 from Exercise session activity, and
- 75%, that is, 6 * 8 = 48 from Assignments.
These points will be scaled to exam points to yield a maximum of 10 points, while the exam will give a maximum of 30 points, and these will together define the grade given from the course.
The table below summarises the content of the exercise sessions, assignments related to them and whether students will be required to give presentations or not.
| Exercise | Date | Content | Related Assignments | Presentations |
|---|---|---|---|---|
| 1 |
12.09 | Basic cash flow calculations. PV and IRR, inflation. | - | No |
| 2 | 19.09 | Annuity formula. Mortgage calculations. Bond calculations. Duration. |
1, 2 | Yes |
| 3 | 26.09 | Spot rates, duration. | 2, 3 | Yes |
| 4 | 03.10 | Applied interest rate analysis. | - | No |
| 5 | 10.10 | Mean-variance portfolio theory. | 4 | Yes |
| 6 | 17.10 | Capital asset pricing model. | 5 | Yes |
| 7 | 31.10 | Models and data, General principles. | 5 | Yes |
| 8 | 07.11 | Derivative instruments. | - | Yes |
| 9 | 14.11 | Basic options theory. | 6 | Yes |
| 10 | 21.11 | Options pricing in binomial lattice. | 7, 8 | Yes |
| 11 | 28.11 | Options pricing in continuous time. | - | No |
| 12 | 05.12 | Interest rate derivatives. | - | No |
IMPORTANT:
The "Presentations" column indicates student presentations and points will only be distributed during sessions where students give presentations (sessions with a "Yes" in the "Presentations" column).
Exercises = Tasks that will be presented on the blackboard.