Note: This module is part of a four-module corporate finance sequence that will span the entire semester, each module being 3 weeks long.
Prerequisite: Students must have taken, or take concurrently, Introduction to Finance Concepts or Analytical Methods at Harvard Law School, or a similarly basic introduction to net present value and its ingredients during their undergraduate or other studies.
Exam Type: Any-day takehome
This module will be graded based on a mini-exam at the end of the module, i.e., during the semester.
This new course seeks to develop financial thinking, with applications to legal problems and documents. Concepts to be covered will include (1) arbitrage and the law of one price, (2) market structure and efficiency, (3) problems of asymmetric information and collective action, and (4) options and auctions. Applications will include (1) firm valuation, (2) event studies and trading regulation, (3) financial contracts, and (4) market and contract design. The course will be divided into four modules of three weeks and one credit each that roughly track the numbering above, and students can choose to take only the first one, two, or three modules. The course will emphasize learning through applications: all or some lectures will be pre-recorded for online viewing, and students will spend most or all of the remaining time in class working on problems in groups.
Module I will be graded pass/fail.
Note: This module will take place from 1/22/18 to 2/9/2018.