ECON 1009 Lecture Notes - Interest Rate Swap, Libor, Stock Market Index

• School: University of Adelaide
• Department: Economics
• Course: ECON 1009
• Professor: Raul Barreto

Document Summary

Course learning outcome 1 is for students to be able identify and explain the main functions of the principal financial markets and institutions in a typical modern financial system". Course learning outcome 3 is for students to be able identify the objectives of monetary policy, and to describe both orthodox and unconventional approaches used around the world to monetary policy implementation". Course learning outcome 4 is for students to be able "to describe how the foreign exchange market works, identify the main determinants of movements in floating exchange rates, and to relate exchange rate policy to monetary policy". Course learning outcome 5 is for students to be able "to identify and describe futures and options contracts, and to explain the main determinants of the value of an options contract". A plain vanilla interest-rate swap as an example of a swap contract. Benchmarks, prices and net cash flows for swaps.