Professor Droussiotis's Web Platform

SHU BFIN 4234/BFIN 7331 - Futures, Options and Other Derivatives

HOME PAGE
_______________________________
---- SUMMER 2025 SEMINARS ---------
Columbia University Pre-College Finance
Columbia University Saturday Seminar
DROU ACCADEMY SEMINARS
_______________________________
---- FALL 2025 LECTURES ---
SHU BFIN 4234/7331 Derivatives
SHU BFIN 4241 Mergers & Acquisitions
Fordham FNBU 4443 Credit & Banking
_______________________________
Market Data Resources Links
_______________________________
-----PROFESSOR's INFO-----
PROFESSOR'S TEXT BOOKS
LECTURE VIDEOS
ACCESSS TEXTBOOKS (PWD)
_______________________________
DrouMarkets.com Sim Game
Biography
Published Books/Articles
Rate your Professor
_______________________________
--- OTHER COURSES ---
BARUCH COLLEGE
COLUMBIA UNIVERSITY
FAIRLEIGH DICKINSON UNIVERSITY
FORDHAM UNIVERSITY
SETON HALL UNIVERSITY
_______________________________
BARUCH CAPS
CITY UNITY COLLEGE

seton_hall_logo.jpg

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.
______________________________________________________________________________________________________________________________________________________________________________________

Course Outline -  Lectures , Assignments and Exams

INFO:

LINKS:

 

INFO:

LINKS:

 

INFO:

LINKS:

 

INFO:

LINKS:

Syllabus

Syllabus Spring 2025

Professor's Inbox
(upload info for Professor)

Professor's Inbox

Processor's Email

Office Hours
In person
 

Tuesdays and Thursdays 9:30-11:00am

JH ROOM# 691

Zoom Channel

Zoom Link to Class (Hybrid for Graduate Students)

Text Book

Supplemental Textbook

Professor's Biography

Professor's Biography

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

Make an Appointment Link

THURSDAYS

6:30-8:40PM

Aug 28 

Sep 4 

Sep 11

Sep 18

Sep 25

Oct 2

Oct 9

Oct 16

Oct 23

Oct 30

Nov 7

Nov 13

Nov 20

Nov 27

Dec 4

Dec 11
Final Exam
On-line
Via Canvas

   

OPTION STRATEGIES AND VALUATION

N

O

 

C

L

A

S

S

OPTION STRATEGIES AND VALUATION

EQUITY
VALUATION

FUTURES, FORWARDS, SWAPS, CDS AND FRA's

N

O

 

C

L

A

S

S

   

supplemental_textbook.jpg

      Chapter    13

Introduction & Structure of Derivatives Markets 

Chapter 13 

Basic Option Strategies 

Chapter 13 

Advanced Option Strategies 

Chapter 13 

Spread  Option Strategies 

Chapter 13
 
Review of all Options (Basic, Covered Strategies and Advance Strategies) 

Chapter 13

Intro to Binomial Pricing Model - Method #1

 The Binomial Model -  Single and Multi-stage Approach

 

In-Class Practice

EXAM REVIEW

Midterm Exam Review

Options Formula

Options Practice Sheet with Answers

 

MIDTERM EXAM RESULTS REVIEW

Chapter 13

Option Pricing Models:

The Black-Scholes-Merton Model 

Instructor's Notes:
 
 Equity Valuations using Options approach
 

Chapter 14

Forwards & Futures

Chapter 14

Interest Rate and Currency Swaps, TRS and CDS

Exam Review

 

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

Valuation of IP and Startups using Black Scholes

Case Study: Metanext Tech Start-up Valuation

Futures, Forwards & Swaps

Futures, Forwards & Swaps

Final Exam Review

 

Zoom Recordings

                 

Zoom Recording of How to Value IP and Start-ups using Black Scholes

       

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

 

Excel Template: Options: Concepts, Strategy and Valuations

Basic Option Strategies (Protective Puts, Covered Calls, Collars)

Advanced Strategies (Bull, Bear, Butterfly Spreads)

Spread Options In-Class Examples

 

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

BOPM (single and 2-period) Method 2

   

Black Scholes Option Model

SaaS IP Case Study - OPM Valuation

Distress Company Valuation using Black Scholes - Spirit Air Bankruptcy

Futures & Forwards

Hedging Strategy using Futures

Chapter 14 - Futures, Forwards & Swaps

SWAPS

Total Return Swaps (TRA)

SaaS IP Case Study - OPM Valuation

Distress Company Valuation using Black Scholes - Spirit Air Bankruptcy

 

EXAMS

             

MidTerm online via Canvas

         

Final Exam

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

Homework found on Canvas with spreadsheet template

Homework #2

Homework found on Canvas with spreadsheet template

Homework #3

Homework found on Canvas with spreadsheet template

Homework #5

Homework found on Canvas with spreadsheet template


   

Homework #4a nd 4b

Homework found on Canvas 

Homework #9

Homework found on Canvas with spreadsheet template


Homework #6

Homework found on Canvas with spreadsheet template


Homework #7a and 8

Homework found on Canvas with spreadsheet template


   
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

The Big Short Clip on CDS

Total Return Swap gone wrong - Article

LIBOR MARKETS Interest Rates

Managing Negative Interest Rates

     

Practice Sheets

 

Options Practice Sheet with Answers

 

The Greeks in Options Explain

                   
Print