lecture1 - Introduction to Options Futures and Other...

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Lecture #1 – Course
Introduction
Introduction to Options, Futures,
and Other Derivatives
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Lecture #1 – Course
Introduction
Options, Futures, and Other
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Today’s game plan
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Administrative issues
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Course Introduction
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Review course syllabus
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Internet Resources
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Professor information
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Student information
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Assignments for the next class
meeting
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Risk, Uncertainty, and Financial
Markets
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Lecture #1 – Course Introduction
Issues addressed by this course

We are interested in finding answers
to questions such as:

How can we measure and characterize how
individuals “feel about” risk (in terms of pricing
of risky assets)?

How can we compare the risks of different
assets?

How can the risks of assets (in a time series
sense) be modeled, and what are the
implications for the pricing of derivative
securities; e.g., options, futures, forwards,
swaps, etc.?

How can derivatives theory be applied to
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Lecture #1: Course Introduction

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Lecture #1 – Course Introduction
Course Syllabus
Texts and Materials

John C. Hull, Options, Futures and
Other Derivatives, 7th Edition,
Prentice Hall (required).

Readings (assigned from sources
other than the textbook) distributed
from the following webpage
(required):
http://fin4366.garven.com/readings.htm
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Lecture #1: Course Introduction

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Lecture #1 – Course Introduction
Course Syllabus
Grade Determination:
Final Grade = .15(Class
Attendance/Participation) + .20(Problem
Sets) + Max{.20(Midterm Exam 1) + .