Capital Markets and Valuation (WT)

Assessment methode:

Exam: 60 Min. (6 CP)




Recommended prior knowledge:

Corporate finance





Examination requirements:

• Demonstration of knowledge of the similarities and differences between various classes of financial instruments, such as bonds, stocks, and derivatives.


• Demonstration of knowledge of the key concepts of financial instrument valuation (duplication principle, no-arbitrage valuation, equilibrium valuation).


• Ability to analyze financial products.


• Ability to perform a concrete assessment of financial products.

Qualification objectives/skills:

Upon successful completion of the module, students will have acquired the following skills:

• They know the characteristics of various financial instruments such as bonds, forwards, options, and stocks and can explain them, They know the characteristics of various financial instruments such as bonds, forwards, options, and stocks and can explain them.


• They understand various methods for evaluating financial securities and can assess them critically and reflectively.


• They can identify and explain the implications of the various valuation methods for asset management and investor behavior.


• They can explain the importance of sustainability and non-financial motives for the valuation of financial instruments and assess the limitations of known valuation models in this regard.


• They can classify a given evaluation problem in the context of the methods presented in the course and analyze it independently.

Lecture content:

1. Introduction to the valuation of financial instruments and basic valuation principles

2. Valuation of bonds: Static duplication for certain payments

3. Valuation of forwards and futures: Static duplication for uncertain payments

4. Valuation of options: Dynamic replication for uncertain payments

5. Valuation of stocks: Replication based on equivalent risk

5.1. Portfolio theory

5.2. Capital Asset Pricing Model (CAPM)