FIN 410-Derivatives

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, 8th Edition, Prentice Hall, 2013

Text Web Site


Financial Calculator - HP 12C required

Access to Computer and Excel

Prerequisites - FIN 210  (unless waived by Dr. Will)

 

††††††††††† Syllabus - Content of web and material in class supplements syllabus

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 CBOE option calculator or Option Calculator at Columbia University 

Link 8 Mortgages

Link 9 MBS overview

Other Links

Weather Derivatives

Misc Derivative Publications

Derivative definitions

Options 101

Option Strategies

 

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 personís actual words, either oral or written;

 Paraphrase another personís words, either oral or written;

 Use another personís 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 both on the public site of the university as well as in the Student Handbook (requires intranet access). It is the responsibility of the student to avail themselves of this information.