Introduction
 Difference between accounting and finance
 What is an investment?
 Physical and financial investments
 What is a financial product?
 Stocks and bonds
 The modelling of time
Elementary probability theory (part 1)
 The modelling of uncertain future
 Random experiment, random variable, stability of long term results
 The concept of probabilities
 Simulations with a spreadsheet
 Distribution or density of a random variable
 Expectation of a random variable
 Variance and standard deviation of a random variable
 Gaussian random variables


Elementary probability theory (part 2)
 Four situations involving random variables
 Profitability as a random variable
 The risk of a security
 Investors and gamblers
 Utility of money: Saint Petersburg paradox
 Risk aversion
Chapter 4

Chapter 5
 evaluating investments
 the role of cost accounting
 example 1
 example 2
 example 3
Chapter 6
 bonds: new bonds
 bonds: second hand bonds


Chapter 7
 what is advanced finance
 continuous time
 option pricing
 no arbitrage principle revisited
 Black & Scholes formula
