This final module presents an alternative solution to the liquidity and price discovery problems faced during the banking crisis. Topics covered include:
Participants will evaluate the effectiveness of these solutions in restoring market confidence and stability.
This module provides a foundational overview of the Geithner Plan, detailing its purpose in addressing the banking crisis. The Geithner Plan aims to stabilize the financial system by:
By understanding these key concepts, learners gain insight into the initial steps taken to mitigate financial instability.
This module delves deeper into the complexities of the Geithner Plan, particularly the challenges arising from banks purchasing their own assets. Key topics include:
Students will explore case studies and theoretical frameworks to understand the broader consequences of such actions within the financial system.
This module introduces more exotic financial strategies that banks could employ to transfer exposure to taxpayers. The discussion covers:
Participants will analyze various scenarios to grasp the complexities of risk exposure and the role of government intervention.
This module focuses on constructing investment strategies that provide an investor with upside potential while limiting downside risk. Key components include:
Participants will engage in practical exercises to design investment portfolios that align with the principles discussed.
This module is dedicated to quantifying the value of put options within the context of the Geithner Plan. It covers:
By the end of the module, participants will have a comprehensive understanding of how put options can be utilized to safeguard investments.
This final module presents an alternative solution to the liquidity and price discovery problems faced during the banking crisis. Topics covered include:
Participants will evaluate the effectiveness of these solutions in restoring market confidence and stability.