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Business 70.4 – Options, Futures, and Commodities
Department of Economics and Management
Professor Myles Bassell http://userhome.brooklyn.cuny.edu/bassell/
Phone: （ 718 ）951-
Email: professorbassell 2 @yahoo.com *** check YOUR email daily
Office Hours: By Appointment
In Whitehead 217A: Tuesdays & Thursdays 5:00–6:15 **By Appointment
Virtual Office Hours: 24/7 Email / Instant Message
Required Text Book
Options, Futures, and Other Derivatives
By John Hull Prentice Hall
ISBN: 0131499084
6 th^ Edition
My Dozen Objectives
- Distribute a written syllabus the first day of class
- Demonstrate my ability to organize materials for the class
- Stimulate interest in the topic being studied
- Generate effective class discussion when appropriate
- Communicate effectively and speak clearly
- Encourage independent thinking and ethical behavior
- Demonstrate openness to students’ comments, questions, and viewpoints
- Display an exceptional understanding of the course subject matter
- Keep to the time and schedule requirements of the class
- Provide students access to me outside of class and be available for Q&A
- Clearly communicate course requirements and assignments
- Promptly grade exams
Expected Course Outcomes
Students completing this course will:
- Understand key RISK MANAGEMENT concepts, terms, and definitions
- Develop an understanding of how fundamental concepts and theories are applied
- Comprehend the importance of options, futures, and commodities
- Attain a practical understanding of different types of derivatives
- Appreciate cultural diversity and respect others who are of a different culture
My Goal
My goal is for students to L E A R N! It is all about you!
O p t i o n s & F u t u r e s : Bus 70.4 Website http://userhome.brooklyn.cuny.edu/bassell/
Back up site http://mibusa.com/brooklyn/
Department of Economics and Management
BUS 70.4 – Options, Futures, and Commodities Professor Bassell Page 2 of 9
My Goals For You
- Increase Your general knowledge about the subject
- Enhance Your ability to analyze and solve problems
- Improve Your ability to use computers and the Internet
- Expand Your ability to find and use information on your own
- Develop Your ability to express your ideas
- Fortify Your appreciation and sensitivity to ethical issues
- Enrich Your understanding of different cultures and have you become a champion of cultural diversity
My Mission
To help students achieve their educational and professional goals.
Course Overview
The focus of Bus 70.4 is on providing a sophisticated overview of the issues and dilemmas facing
risk managers. Derivatives (options and futures) are presented as a tool for managers to
minimize risk. Methodology: The text book is required and an important tool used to expose
students to important risk management concepts and topics. The application of key risk
management concepts will be explored and students will be required to analyze case studies.
The classroom experience is designed to reinforce key concepts from the text book and introduce
new concepts. Discussion, lecture, powerpoint presentations, and video segments about the
application of the concepts will be used to help students develop a mastery in the subject matter.
We will review Business Snapshots for important concepts.
O p t i o n s & F u t u r e s : Bus 70.4 Website http://userhome.brooklyn.cuny.edu/bassell/
Back up site http://mibusa.com/brooklyn/
Department of Economics and Management BUS 70.4 – Options, Futures, and Commodities Professor Bassell Page 4 of 9
Exams (2)
There will be 2 Exams **** There are NO makeup Exams****
Exam # Date of Exam Chapters
1 Midterm^ March 19th 1, 2, 3,4,5,6,7,8,
2 Final^ Cumulative
You are required to take both exams. There are NO makeup exams allowed by
the department. PLEASE do not cheat or violate the code of conduct! It is not
worth getting an F or being suspended from the university.
EXTRA CREDIT:^ There are no EXTRA Credit assignments.^ Any student wanting to
earn HONORS credit will need to have their project approved by me.
Your exams and projects will be graded diligently. There is NO curve in grading exams. If your
average is a 59 you earned an F. There are NO extra credit assignments. A rigorous process will
be used to determine your final grade. If you get an A you should get satisfaction from knowing that
you worked hard and earned that grade.
Exam Types
=The Final is ** Cumulative **
The date of the first Exam is posted in the Reading Schedule
It will include multiple choice, fill-in, matching, short essay etc.
Grading Percentage
o Midterm 50%
o Project Part 1 5%
o Project Part 2 5%
o Project Part 3 5%
o Final 25%
o Attendance/Participation 10%
O p t i o n s & F u t u r e s : Bus 70.4 Website http://userhome.brooklyn.cuny.edu/bassell/
Back up site http://mibusa.com/brooklyn/
Factors impacting your grade: o Cheating o Infrequent attendance o Rude or disruptive behavior o Signing the attendance sheet and leaving o Signing attendance sheet for someone else o Failure to turn off electronic devices (cell phones, pagers etc)
Department of Economics and Management BUS 70.4 – Options, Futures, and Commodities Professor Bassell Page 5 of 9
Grading Criteria
A 92.5% +^ C 72.5% to 77.49% A- 90.0% to 92.49%^ C- 70.0% to 72.49% B+ 87.5% to 89.99%^ D+ 67.5% to 69.99% B 82.5% to 87.49%^ D 62.5% to 67.49% B- 80.0% to 82.49%^ D- 60.0% to 62.49% C+ 77.5% to 79.99%^ F Below 60%
Study Guides, Projects, and Assignments
You must complete and submit ALL study guides, projects, and assignments. You must submit them the day
they are due. Late submissions of projects will bear a 1 full grade lower penalty. Study guides count towards
class participation. Each study guide or assignment not submitted reduces your course grade 1 point. Study
guides includes, but not limited to end of chapter QP (Questions and Problems) and AQ (Assignment
Questions). Before submitting your study guide assignment make a copy of your completed study guide
assignment so you can use it to study. Make sure it is neat and easy to read. Also make sure that it is in your
own handwriting. *****Do not photo copy and submit the study guide of someone else.
Some databases that are available at Brooklyn College that would be relevant to the class (all of the databases mentioned below are available remotely) +Business Source Premier -- access to full-text, scholarly materials (as well as trade publications, case studies)
+Communication & Mass Media Complete - access to full-text, scholarly materials, trade publications, etc). +Business & Company Resource Center - search for company or industry information & profiles (rankings, products & brands, chronologies, etc.), contains some articles, but does not have a robust searching interface. (articles could discuss management issues/best practices for a company/industry) +Academic Search Premier - access to full-text, scholarly materials, popular magazines, trade publications, newspapers, etc. This covers many subject areas. +JSTOR - everything in this database is available in full-text, all journals are scholarly; -Project Muse - everything in this database is available in full-text, all journals are scholarly; covers many subject areas To get to these databases from the Brooklyn College Library main page:
+Under Research Tools, choose Databases for an alphabetical listing (if you know the name of the database you want to search) OR
+Under Research Tools, choose Resources by subject (to get a list of database in that subject area) Don't forget the New York Public Library Business Library. (SIBL) has amazing resources http://www.nypl.org/research/sibl/index.html
how to get a library card ----> http://www.nypl.org/books/cards.html
Department of Economics and Management BUS 70.4 – Options, Futures, and Commodities Professor Bassell Page 7 of 9
Options, Futures, and Other Derivatives
By John Hull Prentice Hall 6th Edition
ISBN: 0131499084
Table of Contents
Preface.
- Introduction.
- Mechanics of Futures Markets.
- Hedging Strategies Using Futures.
- Interest Rates.
- Determination of Forward and Futures Prices.
- Interest Rate Futures.
- Swaps.
- Mechanics of Options Markets.
- Properties of Stock Options.
- Trading Strategies Involving Options.
- Binomial Trees.
- Wiener Processes and Ito’s Lemma.
- The Black-Scholes-Merton Model.
- Options on Stock Indices, Currencies, and Futures.
- Greek Letters.
- Volatility Smiles.
- Basic Numerical Procedures.
- Value at Risk.
- Estimating Volatilities and Correlations for Risk Management.
- Credit Risk.
- Credit Derivatives.
- Exotic Options.
- Insurance, Weather, and Energy Derivatives.
- More on Models and Numerical Procedures.
- Martingales and Measures.
- Interest Rate Derivatives: The Standard Market Models.
- Convexity, Timing, and Quanto Adjustments.
- Interest Rate Derivatives: Models of the Short Rate.
- Interest Rate Derivatives: HJM and LMM.
- Swaps Revisited.
- Real Options.
- Derivatives Mishaps and What We Can Learn from Them.
Brooklyn College – Spring 2007
Department of Economics and Management Reading Schedule
BUS 70.4 – Options, Futures, and Commodities Professor Myles Bassell [email protected] Page 8 of 9
Week Date Topics Reading
Assignments
Due
Dates
1 Jan 29^ Risk Dynamics (Chapter 1)
2 Feb 5 Mechanics of Futures (2) Hedging Strategies (3)
Chapters 2 & 3 AQ 1.26, 1.27, 1.28, 1.
3 Feb 12^ Lincolns Birthday^ -^ College Closed Feb 15 - No Class
College Closed
4 Feb 19^ Presidents Day –^ College Closed Feb 21 - No Class
College Closed
5 Feb 26^ Interest Rates (4) Forward & Future Prices (5)
Chapters 4 & 5 QP 2.1 – 2. QP 3.1 – 3. AQ 3.23 – 3. 6 March 5^ Interest Rate Futures (6) Swaps (7)
Chapters 6 & 7 QP 4.1-4. AQ 4.24-4. QP 5.1-5. AQ 5.24-5. 7 March 12^ Options Markets (8) Properties of Stock Options (9)
Chapters 8 & 9 (^) Submit Project 1
8 March 19 Midterm EXAM Chapters
Midterm Exam
9 March 26^ Trading Strategies (10) Options on Stock Indices (14)
Chapter 10 Chapter 14
Go to web
10 Apr 2^ Spring Break^ No Class^ -
11 Apr 9^ Spring Break^ No Class^ -
12 Apr 16^ Credit Risk (20) Credit Derivatives (21)
Submit Project 2
13 Apr 23^ Independent Study^ No Class^ -
14 Apr 30^ Independent Study^ No Class^ -
15 May 7^ Real Options (31)^ Submit
Project 3
16 May 14^ Last Day of Class Review
Go to web
May 21-25 Cumulative 6-8PM FINAL Exam
