MCB-51403 Capita Selecta Commodity Futures & Options

Course

Credits 3.00

Language of instruction:

English

Assumed knowledge on:

MST-21304 Advanced Management and Marketing

Continuation courses:

MCB-50804 International Marketing of Commodity and Food

Contents:

The obctives of MCB Capita Selecta Commodity Futeres & Options are:
- to introduce studetns to futeres and options markets. Students will develop an understanding of the markets and how they work, gain knowledge about the theory behind futeres and options markets, identify their economic functions, and develop an analytical capability to evaluate their economic usefullness;
- To understand the basic underlying price relationship between cash and futeres markets, how to apply this information to business risk-management decision making, and how to analyze alternative marketing and hedging strategies;
- To obtain a working knowledge of agricultural commodity, interest rate, stock index and foreign currency futeres contacts as well as options on fututes contracts. Students will hasve the opportunity to participate in simulated trading.

Aims:

At the end of the course student:
- know the different concepts and tools in commodity futeres and options;
- are able to apply these concetps and tools under different perspectives and problem areas.

Activities:

The course includes lectures and computer practicals.

Examination:

Students will be evaluated on the following basis:
Final examination 65%; Options Homework Problems (12%); Take-home Homework Problems (8%); HedgeSim Exercises (2) (5%); TradeSim Exercise (5%); Class Participation, in-class assignments (5%).

Literature:

R.M. Leuthold, J.C. Junkus, and J.E. Cordier, The Theory and practice of Future Markets. Lexington Books, 1989.
A course guide is available at the MCB secretariat (Mrs. Ellen Vossen).