Main Content
Syllabus
FIN 513 Speculative Markets
Analysis of derivative securities covering options, forwards, futures, and OTC derivatives. Topics include valuation, trading, and hedging. Involves computer analysis.
Prerequisite: FIN 508
Overview | Objectives | Materials | Library Resources | Technical Requirements | Course Requirements | Assignments | Course Schedule | Grading | Academic Integrity | Accommodating Disabilities | Additional Policies
Overview
This course is an introduction to financial derivatives used in financial risk management. The focus will be on the pricing and valuation of forward contracts, futures, swaps, and options. In addition, various hedging strategies will be surveyed using the financial derivatives as basic building blocks to manage financial risk exposures to equity prices, interest rates, foreign exchange rates, and commodity prices.
Course Objectives
After completing the course, students should be able to understand:
- how derivatives work;
- how derivatives are priced;
- how existing derivative positions are evaluated;
- how derivatives are used, particularly in managing financial risk exposure; and
- how various hedging strategies are created using derivative instruments.
Required Course Materials
Most World Campus courses require that students purchase materials (e.g., textbooks, specific software, etc.). To learn about how to order materials, please see the Course Materials page. You should check LionPATH approximately 3–4 weeks before the course begins for a list of required materials.
Software: Microsoft Excel will be used for this course.
Excel Tutorial: Video tutorials are taught by industry experts and available 24/7. In order to access the tutorials, view Lynda.com videos covering Excel.
Library Resources
Many of the University Libraries resources can be utilized from a distance. Through the Libraries website, you can
- access magazine, journal, and newspaper articles online using library databases;
- borrow materials and have them delivered to your doorstep—or even your desktop;
- get research help via email, chat, or phone using the Ask a Librarian service; and
- much more.
You can view the Online Students' Library Guide for more information.
You must have an active Penn State Access Account to take full advantage of the Libraries' resources and services. Once you have a Penn State account, you will automatically be registered with the library within 24–48 hours. If you would like to determine whether your registration has been completed, visit the Libraries home page and select My Account.
Technical Specifications
Note: Courses that are designated as running in Canvas have different technical requirements. For those courses, please review the Canvas Technical Requirements for MFIN courses.
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| Operating System | Windows Vista, Windows 7, Windows 8* Macintosh users may have problems using the specialized software required in some courses. *Windows 8 support excludes the tablet only RT version |
| Processor | 1 GHz or higher |
| Memory | 2 GB of RAM |
| Hard Drive Space | 500 MB free disk space |
| Browser | We recommend the latest Angel-supported version of Firefox or
Internet Explorer. To determine if your browser fits this criteria and
for advice on downloading a supported version, please refer to the
following ITS knowledgebase article:http://kb.its.psu.edu/cms/article/6
Note: Cookies, Java, and JavaScript must be enabled. Pop-up blockers should be configured to permit new windows from Penn State web sites. Due to nonstandard handling of CSS, JavaScript, and caching, older versions of Internet Explorer (such as IE 6 or earlier) do not work with our courses. |
| Plug-ins | Adobe Reader [Download from Adobe]
Flash Player [Download from Adobe] |
| Additional Software | Microsoft Office 2007 or higher |
| Internet Connection | Broadband (cable or DSL) connection required |
| Printer | Access to graphics-capable printer |
| DVD-ROM | Required |
| Sound Card, Microphone, and Speakers | Required |
| Monitor | Monitor (Capable of at least 1024 x 768 resolution) |
To ensure instructional videos play correctly on your computer:
- Ensure that your javascript is enabled in your browser. Visit the Enable JavaScript in my browser webpage which will help you through the process of enabling your javascript.
- Ensure that you have at least Flash Player 11.0 installed. Visit the Install Adobe Flash Player webpage which will help you through the process of installing the flash player.
If you need technical assistance at any point during the course, please contact the Service Desk.
For registration, advising, disability services, help with materials, exams, general problem solving, visit World Campus Student Services!
Course Requirements
There are a total of seven lesson modules and each module will have:
- learning objectives,
- a road map specifying reading assignment and learning activities,
- lecture notes, and
- problem assignments.
As the course material is very complex and quantitative, your study effort should be devoted to learning the lesson material thoroughly, going over the examples step by step, and solving problems assigned. The solutions are provided for you to check your solutions and correct any mistakes. It is not advisable for you to look study the solutions first without attempting to solve the problems on your own.
Assignments
Quizzes
There will be a weekly quiz consisting of problem-solving questions designed to assess your mastery of the main concepts from the lessons.
Participation
Students are encouraged to post questions, comments, resources, etc. in the general class discussion forum and are also encouraged to participate in the discussion (this can be accessed from the left menu). Your participation is voluntary and you will not be graded on these discussions. They are intended to enhance your learning experience.
Grading
The course grade will be based on seven equally weighted weekly quizes, and determined approximately based on the following scale of course composite scores:
| Quiz | Points | Time frame |
|---|---|---|
| Quiz 1 | 40 | Week 1 |
| Quiz 2 | 40 | Week 2 |
| Quiz 3 | 30 | Week 3 |
| Quiz 4 | 50 | Week 4 |
| Quiz 5 | 30 | Week 5 |
| Quiz 6 | 50 | Week 6 |
| Quiz 7 | 40 | Week 7 |
| Letter Grade | Percentage |
|---|---|
| A | 93.0+ |
| A- | 90.0-92.9 |
| B+ | 87.0-89.9 |
| B | 83.0-86.9 |
| B- | 80.0-82.9 |
| C+ | 77.0-79.9 |
| C | 73.0-76.9 |
| C- | 70.0-72.9 |
| D | 60.0-69.0 |
| F | below 60 |
Late Submissions:
Late submissions will carry a 20% penalty for a one-day delay, 40% for a two-day delay, 50% for a three-day delay, and no credit thereafter.
Important Due Dates:
All the quizzes will be available during the week assigned beginning on Monday at 8 a.m. and closing on the following Monday at 3 a.m. (please see the course schedule for actual due dates).
[printer-friendly version]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
| Lesson 3: Forward Contracts II Part 2 Lesson 4: Futures Part 1 |
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| Readings |
Lesson 3: Forward Contracts II Part 2
Lesson 4: Futures Part 1
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| Assignments |
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Academic Integrity
According to Penn State policy G-9: Academic Integrity , an academic integrity violation is “an intentional, unintentional, or attempted violation of course or assessment policies to gain an academic advantage or to advantage or disadvantage another student academically.” Unless your instructor tells you otherwise, you must complete all course work entirely on your own, using only sources that have been permitted by your instructor, and you may not assist other students with papers, quizzes, exams, or other assessments. If your instructor allows you to use ideas, images, or word phrases created by another person (e.g., from Course Hero or Chegg) or by generative technology, such as ChatGPT, you must identify their source. You may not submit false or fabricated information, use the same academic work for credit in multiple courses, or share instructional content. Students with questions about academic integrity should ask their instructor before submitting work.
Students facing allegations of academic misconduct may not drop/withdraw from the affected course unless they are cleared of wrongdoing (see G-9: Academic Integrity ). Attempted drops will be prevented or reversed, and students will be expected to complete course work and meet course deadlines. Students who are found responsible for academic integrity violations face academic outcomes, which can be severe, and put themselves at jeopardy for other outcomes which may include ineligibility for Dean’s List, pass/fail elections, and grade forgiveness. Students may also face consequences from their home/major program and/or The Schreyer Honors College.
How Academic Integrity Violations Are Handled
World Campus students are expected to act with civility and
personal integrity; respect other students' dignity, rights, and
property; and help create and maintain an environment in which all
can succeed through the fruits of their own efforts. An environment
of academic integrity is requisite to respect for oneself and
others, as well as a civil community.
In cases where academic integrity is questioned, the Policy on Academic Integrity indicates that procedure requires an instructor to inform the student of the allegation. Procedures allow a student to accept or contest a charge. If a student chooses to contest a charge, the case will then be managed by the respective college or campus Academic Integrity Committee. If that committee recommends an administrative sanction (Formal Warning, Conduct Probation, Suspension, Expulsion), the claim will be referred to the Office of Student Accountability and Conflict Response.
All Penn State colleges abide by this Penn State policy, but review procedures may vary by college when academic dishonesty is suspected. Information about Penn State's academic integrity policy and college review procedures is included in the information that students receive upon enrolling in a course. To obtain that information in advance of enrolling in a course, please contact us by going to the Contacts & Help page .
Accommodating Disabilities
Additional Policies
For information about additional policies regarding Penn State Access Accounts; credit by examination; course tuition, fees, and refund schedules; and drops and withdrawals, please see the World Campus Student Center website.
Disclaimer: Please note that the specifics of this Course Syllabus are subject to change, and you will be responsible for abiding by any such changes. Your instructor will notify you of any changes.