I. Theoretical Foundations

Investment Decisions, The Role of Financial Markets and Empirical Regularities; Securities Structure, Choice under Uncertainty, No Arbitrage Principle Pricing (Expected Utility, Stochastic Dominance, Risk Preferences, Arrow-Debreu Prices); Portfolio Choice: Mean-Variance Analysis

Equilibrium: CAPM, APT, Equity Premium, Sharp Ratios; Options; Weiner Processes, Ito's Lemma, Black-Scholes; Interest rates, Bonds, Yield Curve, Term Structure; Forwards, and Futures; Swaps, Credit Risk, Credit Derivatives; Martingales and Equivalent Measures, The Market Price of Risk; Interest Rate Derivatives, Real Options; Options on Stock Indices or Currencies, Exotic Options, Weather and other Insurance Derivatives.

II. Legal and Regulatory Aspects

Introduction and US Capital Markets; EU - The Single Market in Financial Services; Asset Securitization; Futures/Options; Swaps; Mutual Funds and Hedge Funds; ADRs and Privatizations; Emerging-Market Bonds and Financial System Reform