FIN 529
Financial Futures

Instructor:   Dr. Jin W. Choi
                     6216 DePaul Center
                     Phone: (312)362-8842
                     e-mail: jchoi@depaul.edu

Office Hours:    Usually one hour before the class time and at any other time by appointment.

Textbook:    Siegel, Daniel, and Diane Siegel. Futures Markets, The Dryden Press, 1980.

Objective:    To learn the structure of the futures industry, mechanics of futures trading, futures pricing theories,
                     arbitrage concepts, hedging applications, and speculation methods in trading futures.

Course Schedule:
 

Week Topics to be Covered Chapters
1 Introduction 1 and 8
Assignment #1 is given out.
2
Speculative Techniques and Pricing Futures
2 and 8
     
3
Risk Management via Hedging
3
 
Assignment #1 is due and #2 is given out.
  
     
4
Stock Index Futures - I
4
     
5
Stock Index Futures - II
4
 
Assignment #2 is due.
  
     
6
Midterm Exam
1 thru 4 and 8
     
7
Short-term Insterest Rate Futures
5
 
Assignment #3 is given out.
  
     
8
Short and Long-term Interest Rate Futures
5 and 6
 
Assignment #4 is given out.
  
     
9
Long-term Interest Rate Futures
6
 
Assignment #3 is due.
  
     
10
Foreign Currency Futures
7
 
Assignment #4 is due.
  
     
11
Final Exam
5 thru 7

General Class Format:

The course schedule described above may have to be modified time to time to meet the need of the class. Any changes will be announced in class and every student is responsible for knowing and adapting to such changes. Some subject matter will be emphasized more than others and my lecture will often present an approach or insight to a subject different from the text. While the text provides a good foundation to the understanding of all aspects of futures trading, you are responsible only for the material covered in my lecture. Grading Format: There will be two exams of the midterm and the final with an equal weight of 45% each. The four assignments will have a weight of 2.5% each -- a total of 10%. Any assignments not turned in by the due date will not be graded and thus will receive no points.

No make-up exam will be allowed unless prior permission is granted. If you have to miss the scheduled exam, please discuss the matter with the instructor a week before the exam or arrange to take the exam before the scheduled date. Any missed exam will receive a zero point.

Please visit the grading policy and scale site for a detailed information.