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SHU BFIN 4234 BFIN 7331 - Options, Futures, Derivatives

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---- FALL 2023 COURSES ---
Columbia University Saturday Seminar
Columbia Intro to Finance
Fordham FNBU 3446 Derivatives
SHU ECO 2408 Money and Banking
SHU BFIN 4255 Fin. Modeling
SHU BFIN 4234 & 7331 Derivatives
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SETON HALL UNIVERSITY
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SHU ECO 2408 Money and Banking

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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

INFO:

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LINKS:

Syllabus

Syllabus Fall 2023

Professor's Inbox
(upload info for Professor)

Professor's Inbox

Processor's Email

Office Hours
In person
 

THURSDAYS 4:45-6:15PM

JH ROOM# 691

Zoom Channel

Zoom Link to Class (if announced as Hybrid)

Class Info/time

Thursdays 6.30-8:40pm

Room JH 210

Professor's Biography

Professor's Biography

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

Make an Appointment Link

THURSDAYS

6:30-8:40PM

JH 210

Aug 31

On-Line Via Zoom 

Sep 7 

Sep 14

Sep 21

Sep 28  

Oct 5
(Remote Class via Zoom)

Oct 12

Oct 19  

Oct 26

Zoom Link

 

Nov 2

Nov 9

Nov 16
On Line via Zoom 

Zoom Link

Nov 23

 

Nov 30

Dec 7

Dec 14
On Line Exam

 

OPTION STRATEGIES AND VALUATION

 

FUTURES, FORWARDS, SWAPS, CDS AND FRA's

 

EQUITY
VALUATION

REVIEW AND FINAL EXAM

 

Link to Text Book

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

Introduction to Derivatives and Risk Management 10th Edition

ISBN-13: 9781305104969

Authors: Don M. Chance; Roberts Brooks

Publisher: Cengage Learning

      Chapter    1, 2

Introduction & Structure of Derivatives Markets 

Chapter 6 

Basic Option Strategies 

Chapter 7 

Advanced Option Strategies 

Chapter 3-4 

Principal of Option Pricing
 
 Intro to Binomial Pricing Model - Method #1

N

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C

L

A

S

S

Chapter 4

Option Pricing Models:

The Binomial Model -  Single and Multi-stage Approach

 

Chapter 5 

Option Pricing Models:

The Black-Scholes-Merton Model 

     

MIDTERM EXAM RESULTS REVIEW

 
(PRE RECORDING ZOOM) 

Zoom Recording Midterm Exam Results Review

Chapter 8

Forwards & Futures

Chapters 11 & 12

Credit Swaps, TRS
and CDS

N

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C

L

A

S

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Credit Swaps, TRS
and CDS

Instructor's Notes:
 
 Equity Valuations using Options approach
 

Exam Review

 

Assigned Lectures

Lecture #1

Powerpoint Introduction to Derivatives

Lecture #2

Options: Concepts, Strategy and Valuations

Lecture #3

Options: Concepts, Strategy and Valuations

Lecture #4

Options: Concepts, Strategy and Valuations

Lecture #5

Options: Concepts, Strategy and Valuations

Lecture #6

Options: Concepts, Strategy and Valuations

       

Lecture #8

Futures, Forwards & Swaps

Lecture #9

Futures, Forwards & Swaps

 

Lecture #10

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

Final Exam Review

 

Zoom Recordings

       

Zoom Recording October 5

 

Zoom Link Recording 10/19

     

Zoom Recording 11/9

         

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

           

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

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

BOPM (single and 2-period) Method 2

Black Scholes Option Model

Options Formula

Options Practice Sheet with Answers

EXAM REVIEW

Midterm Exam Review

TEAMS LINK of the exam review

     

Futures & Forwards

Chapter 14 - Futures, Forwards & Swaps

SWAPS

 

Equity Val using Black Scholes

SaaS IP Case Study - OPM Valuation

   

EXAMS

             

MidTerm

Zoom Link

             

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

Complete Chapter 6 #10, 12 and 13 (no need to graph)

 Terminology: Write = Sell 

Text Book Homework #1

Answers H#1

 

Homework #2:

Chapter 7 #6,9,13 

Text Book Homework #2

Answers H#2

Homework #3:

Homework Link #3

Answers H#3

Homework #4:

Homework #4 Link (CD Textbook Chapter 13 BOPM)

Answers #4 - Chapter 13

       

Homework #5:

Homework #5

Homework #5 - Futures - Answers

   

Homework #6:

Homework #6

Homework #7:

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

CFA BOPM

       

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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