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SHU BFIN 4234 BFIN 7331 - Options, Futures, Derivatives

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DROU ACCADEMY
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---- SPRING 2023 COURSES ---
Columbia University Saturday Seminar
Fordham FNBU 4454 Fin. Modeling
SHU BFIN 4241 Merg.& Acquis.
SHU ECO 2408 Money and Banking
SHU BFIN 4234 & 7331 Derivatives
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-----PROFESSOR's INFO-----
PROFESSOR'S TEXT BOOKS
LECTURE VIDEOS
DrouMarkets.com Sim Game
Biography
Published Books/Articles
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-----OTHER CLASS INFO--------
BARUCH COLLEGE
COLUMBIA UNIVERSITY
FAIRLEIGH DICKINSON UNIVERSITY
FORDHAM UNIVERSITY
CITY UNITY COLLEGE
SETON HALL UNIVERSITY

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The course is designed to introduce theoretical and practical applications of financial futures, options and other derivatives such Swaps, Swaptions and FRAs.  Over the last 30 plus years, with the expansion of hedge funds, the markets for these asset classes have grown enormously and has generated innovative techniques for hedging, speculating or arbitraging investments. Derivatives have become one of the most important tools of modern finance. We will examine the institutional aspects of futures, options and swap markets and provide an analytical foundation for the pricing these instruments. The subject matter requires relatively greater use of quantitative methods including the binomial option pricing model as well as the classic model of Black-Scholes-Merton.

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Course Outline -  Lectures , Assignments and Exams

INFO:

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Syllabus

Syllabus Spring 2023

Professor's Inbox
(upload info for Professor)

Professor's Inbox

Processor's Email

Office Hours
In person
 

TUESDAYS 3.30-5:00PM

JH ROOM# 691

Microsoft Team 
(Office Hours)
g office hoursine zoom call

TEAMS LINK (Sign-in)

Class Info/time

Thursdays 6.30-9:00pm

CH 69

Professor's Biography

Professor's Biography

Office Hours/Remote
(9:00-5pm)

Make an Appointment Link

THURSDAYS

6:30-9:00PM

SH 109

Jan 19 

Jan 26 

Feb 2

Feb 9

Feb 16

Feb 23

Mar 2  

Mar 9  

Mar 16
Online Exam

 

Mar 23

Mar 30

Apr 6

Apr 13

 

Apr 20

Apr 27
Pre-recorded Zoom Session

May 4  

May 11
On-Line

 

OPTION STRATEGIES AND VALUATION

 

FUTURES, FORWARDS, SWAPS, CDS AND FRA's

 

EQUITY
VALUATION

REVIEW AND FINAL EXAM

Link to Text Book

Image result for Introduction to Derivatives and Risk Management 10th Edition

Introduction to Derivatives and Risk Management 10th Edition

ISBN-13: 9781305104969

Authors: Don M. Chance; Roberts Brooks

Publisher: Cengage Learning

      Chapter    1, 2

Introduction & Structure of Derivatives Markets 

Chapter 6 

Basic Option Strategies 

Chapter 7 

Advanced Option Strategies 

Chapter 3-4 

Principal of Option Pricing
 
 Intro to Binomial Pricing Model - Method #1

Chapter 4

Option Pricing Models:

The Binomial Model -  Single and Multi-stage Approach

 

Option Pricing Models:

The Black-Scholes-Merton Model 

Chapter 5 

Option Pricing Models:

The Black-Scholes-Merton Model 

 

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MIDTERM EXAM RESULTS REVIEW

Chapter 8

Forwards & Futures

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Chapters 11 & 12

Credit Swaps, TRS
and CDS

Interest Rate Forwards & FRAs

 

Instructor's Notes:
 
 Equity Valuations using Options approach
 

Pre-Recorded Exam Review via Zoom

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Assigned Lectures

Lecture #1

Powerpoint Introduction to Derivatives

Lecture #2

Options: Concepts, Strategy and Valuations

Lecture #3

Options: Concepts, Strategy and Valuations

Lecture #4

Lecture #5

Options: Concepts, Strategy and Valuations

Lecture #6

Options: Concepts, Strategy and Valuations

         

Lecture #8

Futures, Forwards & Swaps

Lecture #9

Futures, Forwards & Swaps

 

Lecture #10

Valuation of start-up businesses using Black-Scholes Options Pricing Model

Final Exam Review

 

Zoom Recordings

                         

Equity Val using Black Scholes

SaaS IP Case Study - OPM Valuation

Zoom Link - Exam Review December 8

 

Lecture on YouTube

 

Introductions to Options and Basic Strategies

JD.com Call Option

JD.com Options - Yahoo Finance

Nike - Bear Put Spread

Nike Options - Yahoo Finance

Introduction to Option Valuation

One-Period BOPM (Leverage & Probability Method) Call Option 1/3

Two-Period BOPM - Call Option 2/3

Two-Stage BOPM - Put Option 3/3

           

Interest Rate Swaps - The Basics 1/3

Interest Rate Swaps and benefits 2/3

Simple Interest Rate Swaps 3/3

Currency Swaps & CDS

       

Assigned Spreadsheets

 

Basic Option Strategies

Excel Template: Options: Concepts, Strategy and Valuations

Advance Option Strategies

Bionomial Option Pricing Model Method 1 (6-step Method)

BOPM (single and 2-period) Method 2

Black Scholes Option Model

Options Formula

Options Practice Sheet with Answers

EXAM REVIEW

Midterm Exam Review

TEAMS LINK of the exam review

     

Futures & Forwards

Chapter 14 - Futures, Forwards & Swaps

SWAPS

       

EXAMS

             

MidTerm

             

Final Exam

Question 8 Take Home Exam - Bonus Points

Question 8 Template

Final Exam Review

Midterm_Exam_Questions_1_2

Options Practice Sheet with Answers

Options Formula

Homework Assignments

   

Homework #1

Complete Chapter 6 #10, 12 and 13 (no need to graph)

 Terminology: Write = Sell 

Text Book Homework #1

Answers H#1

 

Homework #2:

Chapter 7 #6,9,13 

Text Book Homework #2

Answers H#2

Homework #3:

Homework Link #3

Answers H#3

Homework #4:


Homework #4 Link (CD Textbook Chapter 13 BOPM)

Answers #4 - Chapter 13

       

Homework #5:

Homework #5

 

Homework #6:

Homework #6

Homework #7:

Homework #7

 
Reading Assignments

textbookfirsteditionV2.jpeg.jpg

 An Analytical Approach to Investments Finance & Credit (1st Edition)

C.Droussiotis,  Cognella Publishing 

To Purchase Textbook

ARTICLE: GameStop's Gargantuan Gamma Squeeze

GameStop Charts

Greeks in Finance

SIFMA Insights: US Listed Options Primer

Trading and valuing Options

YouTube Link: DVDA Uncovered Put

YouTube Link: Bull Call Spread on Regeneron

Article on Black Scholes

Bitcoin Option Calc Using Black Scholes

Horse Racing & Options

CFA BOPM

       

WSJ Futures Prices

Yahoo Finance Futures Prices

Total Return Swap gone wrong - Article

The Big Short Clip on CDS

LIBOR MARKETS Interest Rates

Managing Negative Interest Rates

       

Practice Sheets

 

Options Practice Sheet with Answers

 

The Greeks in Options Explain

                       
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