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Schedule

FIN 513 Course Schedule

The schedule below outlines the associated timeframes and assignments that we will be covering in this course. All activities/exercises should be completed on an individual basis. Each activity in the Assignments section below will be identified as graded (G) or ungraded (U) . Note that assignments are due based on the North American Eastern Time Zone (ET). This deadline ensures that all students have the same deadlines regardless of where they live.

  • Course length: 7 weeks

NOTE: If you are planning to graduate this semester, please communicate your intent to graduate to your instructor. This will alert your instructor to the need to submit your final grade in time to meet the published graduation deadlines. For more information about graduation policies and deadlines, please see "Graduation" on the World Campus Student Policies website.

Week 1
Week 1

Lesson 1: Introduction - Financial Derivatives and Risk Management
Lesson 2: Forward Contracts I Part 1
Readings

Lesson 1: Introduction - Financial Derivatives and Risk Management

  • Chance, Chapter 1, pp. 1-20
  • Chance & Brooks, Chapter 1 (This is an optional reading.)

Lesson 2: Forward Contracts I Part 1

  • Chance, Chapter 2, pp. 25-45; exclude pp. 34-36 on Forward Rate Agreements (FRA)
Assignments
  1. Lesson 1 Exercise 1: Arbitrage and Forward Pricing (U)
  2. Lesson 1 Assignment Problems (U)
  3. Lesson 2 Exercise 1: Application to the MPC Pricing Question in Overview (U)
  4. Lesson 2 Exercise 2: Application to the MPC Valuation Question in Overview (U)
  5. Lesson 2 Exercise 3: Pricing and Valuation (U)
  6. Lesson 2 Part 1 Assignment Problems (U)
  7. Week 1: Quiz 1 (G)

 
Week 2
Week 2Lesson 2: Forward Contracts I Part 2
Lesson 3: Forward Contracts II Part 1
Readings

Lesson 2: Forward Contracts I Part 2

  • Chance, Chapter 2, pp. 25-50
  • Chance & Brooks, Chapter 8 (This is an optional reading.)
  • Chance & Brooks, Chapter 9 pp. 293-298, read the section on forward contract (This is an optional reading.)

Lesson 3: Forward Contracts II Part 1

  • Chance, Chapter 2, pp. 50-66
Assignments
  1. Lesson 2 Exercise 4: An Asset With Two Known Dollar Dividends (U)
  2. Lesson 2 Exercise 5: Two Dividend Dates With Known Yields (U)
  3. Lesson 2 Part 2 Assignment Problems (U)
  4. Lesson 3 Exercise 1: Price and Value on Bond Forward (U)
  5. Lesson 3 Exercise 2: FX Forward Rate (U)
  6. Lesson 3 Exercise 3: Hedging FX Risk (U)
  7. Lesson 3 Part 1 Assignment Problems (U)
  8. Week 2: Quiz 2 (G)

 
Week 3

Week 3

Lesson 3: Forward Contracts II Part 2
Lesson 4: Futures Part 1
Readings

Lesson 3: Forward Contracts II Part 2

  • Chance, Chapter 2, pp. 34-36
  • Chance & Brooks, Chapter 9, pp. 298-306 (This is an optional reading.)
  • Chance & Brooks, Chapter 13, pp. 456-466, read the section on Forward Rate Agreements (FRA) (This is an optional reading.)

Lesson 4: Futures Part 1

  • Chance, Chapter 3, pp. 81-116
  • Chance & Brooks, Chapter 9 pp. 306-317 (This is an optional reading.)
Assignments
  1. Lesson 3 Exercise 4: FRA Pricing and Valuation (U)
  2. Lesson 3 Part 2 Assignment Problems (U)
  3. Lesson 4 Exercise 1: Futures Margin (U)
  4. Lesson 4 Exercises 2, 3, and 4: Cost of Carry Model (U)
  5. Lesson 4 Part 1 Assignment Problems (U)
  6. Week 3: Quiz 3 (G)
  7. Midterm Feedback Survey (U)

 
Week 4
Week 4Lesson 4: Futures Part 2
Lesson 5: Risk Management Forwards and Futures
Readings

Lesson 4: Futures Part 2

  • Chance, Chapter 3 (pp. 116-142)

Lesson 5: Risk Management Forwards and Futures

  • Chance, Chapter 6 (pp. 341-391)
  • Chance & Brooks, Chapter 10 pp. 333-346 (This is an optional reading.)
Assignments
  1. Lesson 4 Exercise 5: T-bill Futures (U)
  2. Lesson 4 Exercise 6: ED Futures (U)
  3. Lesson 4 Exercise 7: Treasury Bond Futures (U)
  4. Lesson 4 Exercise 8: S&P 500 Futures (U)
  5. Lesson 4 Exercise 9: FX Futures (U)
  6. Lesson 4 Part 2 Assignment Problems (U)
  7. Lesson 5 Exercise 1: Hedge When Yield Beta is Not 1 (U)
  8. Lesson 5 Exercise 2: Duration Targeting of a Bond Portfolio (U)
  9. Lesson 5 Exercise 3: Managing Equity Portfolio Risk with Targeted Beta (U)
  10. Lesson 5 Assignment Problems (U)
  11. Week 4: Quiz 4 (G)

 
Week 5
Week 5Lesson 6: Options I - Black-Scholes Model and Binomial Options Pricing Model
Readings
  • Chance, Chapter 4, pp. 159-242
  • Chance & Brooks, Chapters 2, 3, 4, and 5 (This is an optional reading.)
Assignments
  1. Lesson 6 Exercise 1: Exercise an Option or Sell (U)
  2. Lesson 6 Exercise 2: BSOP (U)
  3. Lesson 6 Exercise 3: Implied Volatility (U)
  4. Lesson 6 Exercise 4: Binomial Option Pricing Model Application (U)
  5. Lesson 6 Exercise 5: Put Option Based on Three-Date Two-Period BOPM (U)
  6. Lesson 6 Assignment Problems (U)
  7. Week 5: Quiz 5 (G)

 
Week 6
Week 6Lesson 7: Options II - Risk Management
Readings
  • Chance, Chapter 7, pp. 411-503
  • Chance & Brooks, Chapters 6 and 7 (This is an optional reading.)
  • Chance & Brooks, Chapter 15 pp. 533-539 (This is an optional reading.)
Assignments
  1. Lesson 7 Exercise 1: Protective Put (U)
  2. Lesson 7 Exercise 2: Bear Call Spread (U)
  3. Lesson 7 Exercise 3: Short Strangle (U)
  4. Lesson 7 Exercise 4: A Zero-cost Collar (U)
  5. Lesson 7 Exercise 5: Interest Rate Collar (U)
  6. Lesson 7 Assignment Problems (U)
  7. Week 6: Quiz 6 (G)

 
Week 7
Week 7Lesson 8: Swaps 
Readings
  • Chance, Chapter 5, pp. 269-299
  • Chance & Brooks, Chapter 12 (This is an optional reading.)
Assignments
  1. Lesson 8 Exercise 1: Pricing Interest Rate Swap (U)
  2. Lesson 8 Exercise 2: Valuing an Aged Floating Rate Security (U)
  3. Lesson 8 Exercise 3: Valuation of an Aged Interest Swap (U)
  4. Lesson 8 Assignment Problems (U)
  5. Week 7: Quiz 7 (G)

 

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