About BSAD 285 A

Financial derivatives - options, futures, and swaps. Topics include: structures of the markets for exchange traded and over-the counter derivatives, identification and exploitation of arbitrage opportunities, use and misuse of derivatives to hedge risk in both financial and product markets. Prerequisites: BSAD 180; Minimum Junior standing; Business Administration major or minor.

Notes

Prereqs enforced by the system: BSAD 180; BSAD, CSIS, EMGT Majors, BSAD Minors, MAcc students; Junior, Senor, or Graduate standing; Required course specific fee of $25; Open to Degree and CDE students.

Section Description

Financial derivatives - options, futures and swaps. Topics include: structures of the markets for exchange traded and over-the counter derivatives; identification and exploitation of arbitrage opportunities; pricing of forwards, futures, options, and convertible bonds, use of derivatives to hedge risk in both financial and product markets. Prerequisites: BSAD 180. Exercises and discussions include topics related to managing environmental risks (in particular hedging weather related events in a potentially more uncertain climate environment) and environmental markets (in particular the EPA Sulphur Dioxide emissions allowance auction done through the Chicago Board of Trade). The focus on environmental risk is ex-post; assuming environmental risks, how can an institution hedge against them. The discussion on the SO2 emissions allowance auction relates to how markets might be harnessed to help improve the environment.

Section Expectation

Students need to have access to the internet for the simulation. Class attendance is very important to your understanding of the material as there is no text required for the course. While the exams are not cumulative the material by nature is. Students unable to take an exam, for a legitimate excused absence, may take a cumulative final to make up for the missed exam; a separate make-up will not be given.

Evaluation

The course is evaluated through exams (two) quizzes (five to six a semester), a trading simulation, and homework (two major projects involving Excel and Bloomberg).

Course Dates

to

Location

Innovation Hall E102 (View Campus Map)

Times

to on Monday and Wednesday

Important Dates

Note: These dates may change before registration begins.

Note: These dates may not be accurate for select courses during the Summer Session.

Courses may be cancelled due to low enrollment. Show your interest by enrolling.

Deadlines
Last Day to Add
Last Day to Drop
Last Day to Withdraw with 50% Refund
Last Day to Withdraw with 25% Refund
Last Day to Withdraw

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