Weekly Topics Covered:
1. Introduction to excel, introductory financial mathematics & functions. Translating mathematical formulae into excel code. Application to pricing bonds and bills. Excel implementation.
2. Further topics in financial mathematics. Amortizing loans, annuities, leases & bonds. Excel implementation.
3. Introduction to capital budgeting. Project cashflows and methods for their estimation
4. Elementary methods of forecasting. Matrix algebra and applications. Implementation in excel.
5. Project appraisal using NPV, IRR, ARR, PP and other methods. Excel implementation
6. Methods for estimating model parameters, Sensitivity and breakeven analysis. Case Studies
7. Class test
8. Introduction to options and valuation via the Black Scholes model.
9. Binomial option pricing methods and implementation in excel.
10. Monte Carlo simulation modelling and financial applications.
11. The "real options approach" to valuation of projects.
12. Case Studies
13. Case Studies and revision