Futures and Options: This course examines the structure and functions of the futures and options markets. The course covers the structure of options and futures markets with an emphasis on American markets such as the CME and CBOE. Additional topics include arbitrage restrictions, option pricing, hedging with futures, options on futures, exotics, trading strategies, and an introduction to corporate securities as options on the underlying cash flows. Prerequisites: FIN 5620 and FIN 5530.

( GMP 5620 OR FIN 5620 )
AND ( FIN 5530 OR GMP 5530 )

A. ENTRANCE COMPETENCIES:

Students must have prerequisite course work in the areas of basic accounting, basic economics, basic mathematics and statistics, managerial accounting, managerial economics, managerial finance, and quantitative methods. Additional coursework in financial markets and investments is required.

All students entering this course should be computer literate, familiar with Microsoft Office 97 Professional Edition or 2000 Professional Edition Software, have unrestricted access to a personal computer, and have the ability to communicate effectively in writing.   

B. EXIT COMPETENCIES:

By the end of this course the student should be able to:
1) Define and describe the nature of options and futures contracts.
2) Use options and futures contracts to modify risk exposure.
3) Employ arbitrage pricing for valuation of derivative securities.
4) Gain experience in conducting basic empirical research.
5) Access the academic financial literature and apply it to practical problems in trading or hedging.

1. Required Materials


1. Textbooks

Futures and Options - 6.Edition - 2008
John C. Hull
Pearson
ISBN: 9780136012337



APA Manual
Effective October 1^st 2009, the 6th edition of the APA Manual is required for all courses.

NSU Bookstore
Textbooks and Case Studies may be purchased from the NSU Bookstore (located in the University Park Plaza) by calling 1-800-509-2665 or online at http://www.nsubooks.bkstore.com.



2. Recommended Materials

Brigham and Ehrhardt (2008), Financial Management: Theory and Practice, (12 ed.)

Groebner, Shannon, Fry and Smith (custom), Business Statistics: A Decision Making Approach, (7th ed.)

The NSU libraries comprise the Alvin Sherman Library, Research, and Information Technology Center, East Campus Branch Library, Health Professions Division Library, Law Library and Technology Center, North Miami Beach Branch Library, University School Library Media Centers, and the William S. Richardson Ocean Science Library. Students are strongly encouraged to visit one of the physical locations and/or take advantage of the vast electronic library available for research. For more information, please visit http://www.nova.edu/library.

Please note that all required and recommended materials should be referenced in APA style.