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

Professor Droussiotis's Web Platform

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

______________________________________________________________________________________________________________________________________________________________________________________

Course Outline - Lectures , Assignments and Exams

INFO:

LINKS:

INFO:

LINKS:

INFO:

LINKS:

INFO:

LINKS:

Syllabus

Syllabus - Summer 2026

Professor's Inbox
(upload info for Professor)

Professor's Inbox

Processor's Email

droussch@shu.edu

Office Hours
In person

Zoom Channel

Zoom Link to Class

Text Book

Supplemental Textbook

Professor's Biography

Professor's Biography

Office Hours/Remote
(Mon & Wed 9:00-2pm)

Make an Appointment Link

	Aug 3 *Zoom Link to Class*	Aug 4	Aug 5	Aug 6	Aug 7	Aug 10	Aug 11	Aug 14	Aug 17	Aug 18	Aug 21
		OPTION STRATEGIES AND VALUATION							FUTURES, FORWARDS, SWAPS, CDS AND FRA's
	Chapter 13 Introduction & Structure of Derivatives Markets	Chapter 13 Basic Option Strategies	Chapter 13 Advanced Option Strategies	Chapter 13 Spread Option Strategies	Chapter 13 Intro to Binomial Pricing Model - Method #1 The Binomial Model - Single and Multi-stage Approach In-Class Practice	Chapter 13 Option Pricing Models: The Black-Scholes-Merton Model	EXAM REVIEW Midterm Exam Review Options Formula Options Practice Sheet with Answers		Chapter 14 Forwards & Futures	Chapter 14 Interest Rate and Currency Swaps, TRS and CDS
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			Futures, Forwards & Swaps	Futures, Forwards & Swaps
Zoom Recordings
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			Futures & Forwards Hedging Strategy using Futures Chapter 14 - Futures, Forwards & Swaps	SWAPS Total Return Swaps (TRA)
EXAMS								MidTerm online via Canvas			Final Exam
Homework Assignments				Homework #1 Homework found on Canvas with spreadsheet template Homework 1 - Derivatives	Homework #2 Homework found on Canvas with spreadsheet template Homework 2 - Derivatives	Homework #3 Homework found on Canvas with spreadsheet template Homework 3 - Derivatives	Homework #4a, 4b and 5 Homework found on Canvas with spreadsheet template Homework 4 - Derivatives Homework #5 - Derivatives			Homework #5 Homework found on Canvas with spreadsheet template Homework #5 - Derivatives
Reading Assignments 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*	*Starbucks Stock Graph* 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*