SHU BFIN 4234 BFIN 7331 - Options, Futures, Derivatives

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SHU BFIN 4234 BFIN 7331 - Options, Futures, Derivatives

The course is designed to introduce theoretical and practical applications of financial futures, options and other derivatives such Swaps, Swaptions and FRAs. Over the last 30 plus years, with the expansion of hedge funds, the markets for these asset classes have grown enormously and has generated innovative techniques for hedging, speculating or arbitraging investments. Derivatives have become one of the most important tools of modern finance. We will examine the institutional aspects of futures, options and swap markets and provide an analytical foundation for the pricing these instruments. The subject matter requires relatively greater use of quantitative methods including the binomial option pricing model as well as the classic model of Black-Scholes-Merton.

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Course Outline - Lectures , Assignments and Exams

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Syllabus

Syllabus Fall 2024

Professor's Inbox
(upload info for Professor)

Professor's Inbox

Processor's Email

droussch@shu.edu

Office Hours
In person

THURSDAYS 4:00-5:30PM
JH ROOM# 691

Zoom Channel

Zoom Link to Class (Hybrid for Graduate Students)

Class Info/time

Thursdays 6.30-8:40pm
Room SH 208

Professor's Biography

Professor's Biography

Office Hours/Remote
(9:00-5pm)

Make an Appointment Link

THURSDAYS

6:30-8:40PM

Aug 29

Sep 5

Sep 12

Sep 19

Sep 26

Oct 3

Oct 10

Oct 17

Remote on-line Via Canvas

Oct 24

Oct 31

Nov 7

Nov 14

Nov 21

Nov 28

Dec 5

Dec 12

OPTION STRATEGIES AND VALUATION

FUTURES, FORWARDS, SWAPS, CDS AND FRA's

EQUITY

VALUATION

N

O

C

L

A

S

S

REVIEW AND FINAL EXAM

VIA ZOOM

Image result for Introduction to Derivatives and Risk Management 10th Edition

Chapter 1, 2

Introduction & Structure of Derivatives Markets

Chapter 6

Basic Option Strategies

Chapter 7

Advanced Option Strategies

Chapter 3-4

Spread Option Strategies

Chapter 4

Principal of Option Pricing

Intro to Binomial Pricing Model - Method #1

Chapter 4

The Binomial Model - Single and Multi-stage Approach

In-Class Practice

Chapter 5

EXAM REVIEW

Midterm Exam - Options

Options Formula

Options Practice Sheet with Answers

MIDTERM EXAM RESULTS REVIEW

Option Pricing Models:

The Black-Scholes-Merton Model

Chapter 8

Forwards & Futures

Chapters 11 & 12

Credit Swaps, TRS

and CDS

Credit Swaps, FRAs, TRS

and CDS

Instructor's Notes:

Equity Valuations using Options approach

Exam Review

via Zoom

Assigned Lectures

Introduction to Derivatives

Options: Concepts, Strategy and Valuations

Options: Concepts, Strategy and Valuations

Options: Concepts, Strategy and Valuations

Options: Concepts, Strategy and Valuations

Options: Concepts, Strategy and Valuations

Options: Concepts, Strategy and Valuations

Futures, Forwards & Swaps

Futures, Forwards & Swaps

Valuation of start-up businesses using Black-Scholes Options Pricing Model

Final Exam Review

Zoom Recordings

Lecture on YouTube

Introductions to Options and Basic Strategies

JD.com Call Option

JD.com Options - Yahoo Finance

Nike - Bear Put Spread

Nike Options - Yahoo Finance

Introduction to Option Valuation

One-Period BOPM (Leverage & Probability Method) Call Option 1/3

Two-Period BOPM - Call Option 2/3

Two-Stage BOPM - Put Option 3/3

Two-Period BOPM - Call Option 2/3

Two-Stage BOPM - Put Option 3/3

Interest Rate Swaps - The Basics 1/3

Interest Rate Swaps and benefits 2/3

Simple Interest Rate Swaps 3/3

Currency Swaps & CDS

Assigned Spreadsheets

Basic Option Strategies

Excel Template: Options: Concepts, Strategy and Valuations

Advance Option Strategies

Spread Options In-Class Examples

Bionomial Option Pricing Model Method 1 (6-step Method)

BOPM (single and 2-period) Method 2

Bionomial Option Pricing Model Method 1 (6-step Method)

BOPM (single and 2-period) Method 2

Black Scholes Option Model

Futures & Forwards

Chapter 14 - Futures, Forwards & Swaps

Equity Val using Black Scholes

SaaS IP Case Study - OPM Valuation

EXAMS

MidTerm online via Canvas

Final Exam

Final Exam Review

Question 8 Take Home Exam - Bonus Points

Question 8 Template

Midterm_Exam_Questions_1_2

Options Practice Sheet with Answers

Options Formula

Homework Assignments

Homework #1

Chapter 6 #10, 12, 13 (no graph for 13)

Text Book Homework #1

Homework #2:

Chapter 7 #6,9,13

Text Book Homework #2

Homework #4:

Homework #4 Link (CD Textbook Chapter 13 BOPM)

Homework #5:

Homework #6:

Homework #7:

Reading Assignments

textbookfirsteditionV2.jpeg.jpg

An Analytical Approach to Investments Finance & Credit (1st Edition)

C.Droussiotis, Cognella Publishing

To Purchase Textbook

ARTICLE: GameStop's Gargantuan Gamma Squeeze

GameStop Charts

Greeks in Finance

SIFMA Insights: US Listed Options Primer

Trading and valuing Options

YouTube Link: DVDA Uncovered Put

YouTube Link: Bull Call Spread on Regeneron

Article on Black Scholes

Bitcoin Option Calc Using Black Scholes

Horse Racing & Options

WSJ Futures Prices

Yahoo Finance Futures Prices

Total Return Swap gone wrong - Article

The Big Short Clip on CDS

LIBOR MARKETS Interest Rates

Managing Negative Interest Rates

Practice Sheets

Options Practice Sheet with Answers

The Greeks in Options Explain

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