Mathematics Of Options Futures And Derivative Securities I
MATH 5075

Fall 2014
Math 5075: Mathematics of Options, Futures, and
Derivative Securities I
Lecture 3: Hedging Strategies Using Futures (Ch. 3)
Lecture 3: Hedging Strategies Using Futures (Ch. 3)
Math 5075
Hedging Strategies Using Futures
Goal: use futures markets to reduce
Mathematics Of Options Futures And Derivative Securities I
MATH 5075

Fall 2014
Math 5075: Mathematics of Options, Futures, and
Derivative Securities I
Lecture 4: Hedging Strategies Using Futures (Ch. 3)
Lecture 4: Hedging Strategies Using Futures (Ch. 3)
Math 5075
Hedge Ratio h
The ratio of the size of the position taken in futures
Mathematics Of Options Futures And Derivative Securities I
MATH 5075

Fall 2014
Math 5075: Mathematics of Options, Futures, and
Derivative Securities I
Lecture 5: Interest Rates
School of Mathematics
University of Minnesota
Reading: Hull Chapter 4
Lecture 5: Interest Rates
Math 5075
Interest Rate and Credit Risk
Interest rate is the
Mathematics Of Options Futures And Derivative Securities I
MATH 5075

Fall 2014
Math 5075: Mathematics of Options, Futures, and
Derivative Securities I
Lecture 6: Interest Rates (cont.)
School of Mathematics
University of Minnesota
Reading: Hull Chapter 4
Lecture 6: Interest Rates (cont.)
Math 5075
Forward Rates
The forward rate is t