English Course Title:

INTERMEDIARIES AND FINANCIAL MARKETS OF
THE EUROPEAN UNION
USP COURSE
DUKE-IN-MADRID
Objectives and Methodology
The goal of the course will be to analyze the function of financial
markets, making special reference to the European market. The class
will be centred on the operation of these markets as an instrument to be
used in business management.
The methodology of the course will consist of a combination of
conceptual presentations and practical exercises and the development
of real cases.
Pre-requisites
Previous knowledge of Financial Management is assumed.
Evaluation
70% Final Exam
30% Participation and other exercises and papers.
Note: In order to receive a grade for this part of the course the student
must attend a minimum of 75% of all classes.
Course Program
PART I. PRINCIPLES OF RATIONALITY IN FINANCIAL
MARKETS
Topic 1:
Principles of Rationality. Special Reference to the Concept of
Arbitrage
1.
2.
3.
4.
5.
General Aspects of the Principles of Rationality
Concept of the Principle of Arbitrage
Absence of Arbitrage in a context without risk
Absence of Arbitrage in a context with risk
Applications of the Principle of Arbitrage in Decision Making
Topic 2
The Principle of Option
1. Concept of the Principle of Option
2. Options at the Due Date
3.
4.
5.
6.
7.
Models of Option Appraisal
Appraisal of European Options
Relation of Parity Between Call and Put options
Appraisal of American Options
Applications of the Principle of Options in Decision Making
PART II. THE EUROPEAN MONETARY SYSTEM
Topic 3
Evolution of the European Monetary System
1.
2.
3.
4.
5.
Introduction
Economic Integration
Evolution of European Integration: The European Union
Creation of the European Monetary System
Elements of the European Monetary System
Topic 4
The Monetary System and the European Monetary Union
1.
2.
3.
4.
5.
6.
7.
8.
Introduction
The Process of Reaching the European Monetary Union
The EURO as Single Currency
The Interest Rate of the EURO
The Reference Indices Connected with the EURO
Fixed-Term Contracts and Futures over Interest Rates
Interest Rate Swap
Options over Interest Rate
PART III. INTERNATIONAL FINANCIAL MARKETS
Topic 5
Introduction to International Financial Markets: The Foreign
Currency Market
1. The International Finance System and the International Financial
Markets
2. Domestic Financial Markets: The Spanish Market
3. Concept and Organization of the Foreign Currency Market
4. Quotation in the Foreign Currency Market
5. Segments of the Foreign Currency Market
6. Fixed-Term Contracts and Futures over Foreign Currency
7. Foreign Currency Swap
8. Options over Foreign Currency
Topic 6
The Euromarket: The Monetary Euromarket and the Capital
Euromarket
1. The Euromarket
2. Concept of the Euromarket
3. Negotiated Products in the Monetary Euromarket: Euro-deposits,
Euro-loans, Euro-Certificates of Deposit, and Euro-Financial
Facilities
4. System of Compensation in the European Union: The TARGET
5. Concept of Capital Euromarket
6. Negotiated Products in the Capital Euromarket: Euro-Credits,
Euro-Bonds, and Euro-Shares
PART IV. THE AUTHORITIES AND FINANCIAL MARKETS
Topic 7
Monetary Authorities and Financial Authorities in the European
Union
1.
2.
3.
4.
5.
6.
Introduction
Institutional Antecedents in the Process of European Integration
European System of Central Banks
European Central Bank
The Performance of the System of European Central Banks
Other European Institutions Related to Economic and Financial
Activity
7. World-Wide Institutions Related to Economic and Financial
Activity
Topic 8
Financial Intermediaries in the European Union
1.
2.
3.
4.
5.
6.
7.
Introduction
Banks in the European Union
Savings Banks in the European Union
Credit Unions in the European Union
Other Credit Institutions in the European Union
Institutions of Collective Investment in the European Union
Insurance Companies in the European Union
BASIC BIBLIOGRAPHY
MARTIN MARIN, J.L.; TRUJILLO PONCE, A; (2004): Manual de Mercados
Financieros, Thomson, Madrid.
HULL, J. (2002): Introducción a los mercados de futuros y opciones, Prentice
Hall, Madrid.
MARIN, J.M; RUBIO, G. (2001): Economía Financiera, Antoni Bosch Editor,
Barcelona.
DIEZ DE CASTRO, L; MASCAREÑAS, J. (1994): Ingeniería Financiera,
McGrawhill. Madrid
ADDITIONAL BIBLIOGRAPHY
ADELL, R.; ROMERO, r. (1996): Opciones y futuros financieros, Pirámide,
Madrid.
ARAGONÉS, J.R. (1990): Economía financiera internacional, Pirámide, Madrid.
BALARIN, E; ROSANAS, J.M; GRANDES, M.J: (1986): Sistemas de
planificación y control, DDB, Bilbao.
BERGES, A.; ONTIVEROS, E. (1984): Mercados de futuros e instrumentos
financieros, Pirámide, Madrid.
CALVO, A; RODRIGUEZ SAIZ, L; PAREJO GAMIR, J.A.; CUERVO, A.; (2005):
Manual de sistema financiero español, Ariel Economía. Barcelona.
CORBI, B. (1991): Financiación internacional, Editorial Ac, Madrid.
COSTA RAN, L.; FONT VILALTA, M: (1992): Nuevos instrumentos financieros en
la estrategia empresarial, ESIC, Madrid.
CUERVO, A. (1994): Análisis y Planificación financiera de la empresa, Civitas,
Madrid.
DE LA TORRE, A. (1996): Operaciones de permuta financiera swaps. Ariel,
Barcelona.
FERNANDEZ, P. (1996): Opciones, futuros e instrumentos derivados, Deusto,
Bilbao.
FREIXAS, X. (1990): Futuros financieros, Alianza, Madrid.
HULL, J. (2002): Introducción a los mercados de futuros y opciones, Prentice
Hall, Madrid.
LAMOTHE, P.; SOLER, J.A. (1996): Swaps y otros derivados OTC en tipos de
interés, McGraw-Hill, Madrid.
MARIN, J.; RUBIO, G. (2001): Economía financiera, Antoni Bosch Editor,
Barcelona.
MARTIN MARIN, J.L; TRUJILLO PONCE, A.; (2004): Manual de mercados
financieros, Thompson, Madrid.
MASCAREÑAS, J. ; ARAGONÉS, J; GONZALEZ, S. (1996): Mercado de divisas
y análisis del mercado financiero, Pirámide, Madrid.
MASCAREÑAS, J. ; ARAGONÉS, J; SOLORZANO, M.; ALVAREZ, A. (1997):
Futuros y opciones financieros, Pirámide, Madrid.
ONTIVEROS, E.; BERGES, A.: MANZANO, D; VALERO, F.J. (1991): Mercados
financieros internacionales, Espasa Calpe.
PALOMO, RJ. ; MATEU, J.L; (2004): Productos financieros y operaciones de
inversión, Instituto Superior de Técnicas y Prácticas Bancarias, Madrid.
PEDROSA, M. (2003): Los mercados financieros internacionales y su
globalización, AC, Madrid.
RUIZ, R. J. ; GIL, A. M. (2000): La planificación financiera de la empresa,
Instituto Superior de Técnicas y Prácticas Bancarias, Madrid.