PRICING AND PRICE FORECASTING - BMEGT35M107

The objective of this course is to provide students with a comprehensive understanding of the fundamental principles of pricing financial instruments and derivatives, as well as the methods for modeling prices and risks. The course introduces the key theoretical models and practical techniques used in modern financial markets, develops students' analytical and problem-solving skills, and fosters the confident application of quantitative methods related to financial decision-making.

1. The audience is familiar with the pricing of money and capital market instruments, capital market transactions, and the related appraisal procedures, as well as the theory and practice of derivatives important in financial risk management. (EFMD-ILO connections: Finance - Knowledge (KKK) - T7 - ILO 1: Analytical thinking)
2. Is familiar with standard finance models, with particular regard to the standard models of economics and their applicability. (EFMD-ILO connections: Finance - Knowledge (KKK) - T4 - ILO 1: Analytical thinking)

1. Is capable of pricing money and capital market instruments, managing and directing capital market transactions, analysing investments and other financial undertakings, and managing financial risks of derivative transactions. (EFMD-ILO connections: Finance - Skills (KKK) - K5 - ILO 1: Analytical thinking)
2. Formulates independent new conclusions, original ideas, and solutions, is capable of applying sophisticated analytical and modelling methods, developing strategies aimed at solving complex problems, making decisions in a changing domestic and international environment, as well as within organisational culture. (EFMD-ILO connections: Finance - Skills (KKK) - K1 - ILO 5: Digital proficiency)

1. Demonstrates creativity and a proactive approach to identifying and solving problems in their work. (EFMD-ILO connections: Finance - Attitude (KKK) - A6 - ILO 5: Digital proficiency)
2. Is open to learning about new developments in the field of finance and proactive in applying them. (EFMD-ILO connections: Finance - Attitude (Specific competences of the educational programme) - SpecA1 - ILO 1: Analytical thinking)

1. Open to accepting well-founded constructive criticism,
2. cooperates with peers in solving tasks during the learning process,
3. is capable of independent decision-making, and is able to make well-informed,
4. balanced judgments in financial decisions.

Lectures, interactive computational examples, case studies, independent problem-solving, as well as the application of digital educational tools and professional software.

• Az előadások során használt prezentációk és jegyzetek, amelyek a félév során folyamatosan feltöltésre kerülnek. / Course slides and lecture notes uploaded during the semester.
• John C. Hull - Options, Futures, and Other Derivatives (11th edition)
• Az oktató által összeállított kiegészítő feladatok, példák és segédanyagok. / Additional lecture notes and problem sets provided by the instructor.

Assessment of the learning outcomes described under 2.2. is based on two written midterm tests.

EFMD-ILO connection: Written mid-term test: Supervised application of financial models, computational tasks and analytical methods. (Finance ILO 1) Online quiz: Formative testing of digital finance tools and ICT knowledge. (Finance ILO 5)

• 1st midterm test: 50
• 2nd midterm test: 50
• Total: 100

The two written mid-term tests can be retaken or upgraded together during the retake week, the result achieved during the retake will become final. No second retake (further opportunity for improvement) is available.

Consulted with the Faculty Student Representative Committee, approved by the Vice Dean for Education, valid from: 04.05.2026.

Subject includes the topics detailed in the course syllabus to ensure learning outcomes listed under 2.2. can be achieved. Timing of the topics will be arranged by the calendar or other circumstances in each semester.