Course Description
Students gain a thorough understanding of options, futures, and other financial instruments. Skills are developed in basic pricing analysis, use of pricing models, and trading and hedging strategies. Students are first introduced to the basic techniques for pricing, hedging, and other analysis. Next, these techniques will be applied through an introduction of hedging strategies. The end goal is to develop skills which the students can apply in derivative markets.
Assignments: Each student will be required to complete a series of assignments dealing with derivative pricing and strategies. These assignments will require students to use theoretical models, monitor market prices, and track strategy positions.
Required Textbooks & Materials:
Fundamentals of Futures and Options Markets by John C. Hull, 9th Edition, Prentice Hall, 2016 … Edition 8 will also work
Financial Calculator – HP 12C required
Access to Computer and Excel
Prerequisites – FIN 210 (unless waived by Dr. Will)
Slides
Set 1 Set 2 Set 3 Set 4 Set 5 Set 6
Set 7 Set 8 Set 9 Set 10 Set 11 Set 12
Set 13 Set 14 Set 15 Set 16 Set 17 Set 18
Set 19 Set 20 Set 21 Set 22 Set 23 Set 24
Web Links
- Link 1 Derivatives overview
- Link 2 Derivative terms
- Link 3 Agricultural commodity futures
- Link 4 Futures basics
- Link 5 Treasury futures
- Link 6 Interest rate swaps
- Link 7 Option Calculator at Columbia University
- Link 8 Mortgages
- Link 9 MBS Video (mostly accurate)
Other Links
Academic Dishonesty and Plagiarism
You must not adopt or reproduce ideas, words, or statements of another person without giving an appropriate acknowledgement to the source. You must give due credit to the originality of others and acknowledge an indebtedness wherever you:
- Quote another person’s actual words, either oral or written;
- Paraphrase another person’s words, either oral or written;
- Use another person’s ideas, opinions, or theories; or
- Cite facts, statistics, or other illustrative material, unless the information is common knowledge.
All assignments must be your original work and not the work of other students. Neither group work nor the individual work of another student may be submitted by you. Submission of such work will be considered academic misconduct. Incidents of academic misconduct, dishonesty and/or plagiarism will be handled as per the Student Handbook.
Academic Integrity and the penalties for violations are defined in the Student Handbook. It is the responsibility of the student to avail themselves of this information.