Foundations of Financial Science

Overview of the course, goals, and how to use the lessons

Principles of present and future value, discounting, annuities, and valuation applications

How institutions, market structure, and information design build trust and affect asset prices

Microstructure drivers of price corrections: order flow imbalances, liquidity, and mean reversion

Market design fundamentals: order types, matching engines, liquidity provision, and price discovery

Stock fundamentals: business models, earnings, dividends, valuation basics, and associated risks

Foundations of cryptocurrencies: protocols, token economics, custody, and key risks

Characteristics of different equity types and cryptocurrencies: liquidity, volatility, and portfolio roles

Measuring returns and risk: volatility, covariance, and risk-adjusted performance metrics

How non-normal return distributions, skewness, kurtosis, and volatility clustering shape financial risk

Methods to compute portfolio returns, attribution, and the effects of rebalancing

Diversification principles: correlation, allocation, and practical limits to diversification

How ETFs work: tracking, creation/redemption mechanics, fees, and their role in portfolio construction

Sources of market fluctuation: liquidity shocks, regime changes, and systemic risk

Learn how derivatives (futures, forwards, and options) work, how they’re priced, and how investors use them to hedge risk or speculate.

An in-depth look at how options amplify returns, the risks of expiration, and their unique nonlinear payoff structure.

Explore how options can be used for hedging, speculation, and arbitrage, highlighting payoff structures, exercise styles, and strategic decision-making.