Skip over navigation

Course Offerings

Course Evaluation Results

Course Details

Fall 2018-2019
ECO 465 (SA)   No Audit

Options, Futures and Financial Derivatives


The course offers an introduction to financial derivatives and the models used to price them. Pricing techniques include the Black-Scholes formula (awarded 1997 Nobel Prize in economics), as well as extensions to accommodate time-varying volatility and more complex contracts. We also devote great attention to discuss the roles played by derivatives in shaping financial markets and the real economy by using commodity markets as a focal point. This course is technical by nature, and requires extensive use of calculus, statistics, and spreadsheet programming.

Sample reading list:
Robert McDonald, Derivative Markets, Pearson, 3rd Ed.

Reading/Writing assignments:
Weekly homework (includes paper-and-pencil problems, numerical work on Excel spreadsheets, and case studies).

Mid Term Exam - 35%
Paper in lieu of Final - 25%
Class/Precept Participation - 15%
Problem set(s) - 25%

Other Requirements:
Open to Juniors, Seniors, and Graduate Students Only.

Prerequisites and Restrictions:
ECO 362, ECO 202, or equivalent statistics course, and calculus..

Schedule/Classroom assignment:

Class numberSectionTimeDaysRoomEnrollmentStatus
21067 L01 08:30:00 am - 09:50:00 am T Th        Enrolled:0 Limit:0 Canceled
21068 C01 07:30:00 pm - 08:20:00 pm T        Enrolled:0 Limit:0 Canceled
21069 C02 03:30:00 pm - 04:20:00 pm Th        Enrolled:0 Limit:0 Canceled