Fundamentals of Futures
and Options Markets, Eighth Edition

COURSE OUTLINE

This is an abbreviated version of the course outline I use for a 14 week elective course. I usually do not have time to cover Chapters 20 to 24. Instructors with semesters that last longer than 14 weeks may be able to cover some or all of these chapters. More information on course design and suggested assignment questions is on the Pearson portal. For access to the Pearson portal contract your Pearson rep.

Course Description

This course covers derivatives such as options, forward contracts, futures contracts, and swaps. By the end of the course you will have a good knowledge of how these contracts work, how they are used, and how they are priced. Derivatives have become an integral part of finance. Whether you end up working for a financial or a non-financial institution you will find the material you learn on this course important.

Texts

The texts for the course are “Fundamentals of Futures and Options Markets”, Eighth Edition by John Hull and “Solutions Manual and Study Guide for Fundamentals of Futures and Options Market”, Eighth Edition by John Hull

Assessment

Assignment 1	15%
Assignment 2	15%
Assignment 3	15%
Final Exam	55%

Schedule:

Week 1:	Introduction; Chapters 1 and 2
Week 2:	Hedging Strategies Using Futures, Chapter 3
Week 3:	Interest Rates, Chapter 4
Week 4:	Determination of Forward and Futures Prices, Chapter 5
Week 5:	Interest Rate Futures, Chapter 6
Week 6:	Swaps, Securitization, and the Crisis, Chapter 7
Week 7	Securitization and the Crisis, Chapter 8
Week 8:	Properties of Options, Chapters 9 and 10
Week 9:	Trading Strategies and Binomial Trees, Chapter 11 and 12
Week 10:	Pricing of Stock Options, Chapter 13 and 14
Week 11:	Options on Stock Indices, Currencies, and Futures, Chapters 15 and 16
Week 12:	The Greeks, Chapters 17
Week 13:	Binomial Trees in Practice and Volatility Smiles, Chapters 18 and 19
Week 14:	Derivatives Mishaps and Course Review, Chapter 25