MBA 642 Financial Derivatives
U1P 2010 MB
Assistant Professor of Finance
Ph.D. – Texas A&M UniversityM.S. - University of Nebraska - Lincoln
Tuesday 2:30 – 4:30 PM or by appointment
5:30 - 9:50 PM
All students should enrolled in this class should have taken FI417 or equivalent
Fundamentals of Derivatives Markets, 1st Edition by Robert McDonald, Pearson, Prentice Hall, 2009
Textbooks can be purchased through the MBS bookstore
Textbooks can be purchased through the Parkville Bookstore
Fundamentals of Futures and Options Markets, 6th Edition, 2009, John C. Hull, Pearson, Prentice Hall
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I will assign end-of-chapter problems for every week. Students are urged to work on those problems. Assigned problems may be covered in the class if the time allowed. I will collect 7 assignments on the due date during the semester. The assignments should be turned in the class. Students may discuss the homework assignment with their classmates; however, all written work must be of their own. The assignments will be graded based on your efforts, not based on correct answers.
There will be one mid-term exam, one comprehensive final exam, homework assignments, and discussion questions during the session. The exams will consist of problems and essay type questions. Students are expected to take examinations at the scheduled times. There will be no make-up exams. Remedies are possible, but only in documented, urgent, and compelling circumstances, and only if I have been informed in advance.
Grades will be based on completion of the required assignments as well as exams. Grades will be awarded according to the following schedule:
All final exams will be comprehensive and will be closed book and closed notes. If calculators are allowed, they will not be multifunctional electronic devices that include features such as: phones, cameras, instant messaging, pagers, and so forth.
Late Submission of Course Materials:
Late submissions are not acceptable and will not be graded. Remedies are possible, but only in documented, urgent, and compelling circumstances, the instructor needs to be informed in advance.
Classroom Rules of Conduct:
Students are expected to arrive in the classroom before the class starts. Class disruptions from cell phones, pagers or any other device will not be allowed. During exams, all cell phones etc. must be turned off.
Week 1/June 8, 2010
Introduction to mechanics of derivatives markets
Discussion questions (Will be provided)
Read: Ch. 1 & 2
Questions: (Will be provided)
Problems-Solving: 1.2, 1.5, 1.8, 1.9, 2.4, 2.5, 2.7, 2.13, 2.14
Week 2/June 15, 2010
Risk Management and Strategies
Read: Ch. 3 & 4
Problems-Solving: 3.1, 3.2, 3.4, 3.7, 3.10, 4.1, 4.3, 4.5, 4.6
Week 3/June 22, 2010
Financial Forwards and Futures
Read: Ch. 5 & 6
Problems-Solving: 5.2, 5.3, 5.5, 5.8, 6.1, 6.3, 6.5, 6.7, 6.9
Week 4/June 29, 2010
Interest Rate Forwards and Futures
Mid-Term Exam (Ch. 1-6)
Read Ch. 7
Problems-Solving: 7.2, 7.5, 7.9, 7.11, 7.15
Week 5/July 6, 2010
Read Ch. 8 & 9
Problems-Solving: 8.1, 8.2, 8.4, 8.6, 9.1, 9.3, 9.4, 9.7
Project/Presentation Proposal Due
Week 6/June 13, 2010
Binomial Options Pricing and the Black-Scholes Formula
Read Ch. 10 & 11
Problems-Solving: 10.1, 10.3, 10.4, 10.5, 11.3, 11.5, 11.6, 11.9
Week 7/June 20, 2010
Financial Engineering and Corporate Applications
Read Ch. 12 & 13
Problems-Solving: 12.1, 12.3, 12.4, 12.6, 13.2, 13.7, 13.9, 13.11, 13.16
Week 8/June 27, 2010
Final Exam: Comprehensive
*Note: Instructor reserves the right to change the subjects due to the progress of the class and unforeseen circumstances.
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Last Updated:5/17/2010 2:58:39 PM