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Module 5

Course Organization.

Module name is Finance for engineers.

topics in finance:

  • household finance
  • company finance
  • markets
  • financial sector.

for engineers means:

  1. attitude understand the theory and apply it. (engineering spirit)
  2. address option pricing. cornerstones of financial engineering.

Why Finance for Engineers

accounting

The attempt recording financial aspects of a firm.

financing

The process of attracting investors to fund a company.

options

An example of derivatives (that only give rights, no obligations)

relevance as a student.

  • make money by investing.
  • finance your business.
  • financial markets and housing.
  • capitalism and the fashion industry.
  • financial markets and sports.
  • finance and the climate.