MCB-51403 Commodity Futures & Options Markets

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Studiepunten 3.00

OnderwijstypeContacturen
Lecture8
Practical5
Independent study0
Course coordinator(s)prof. dr. ir. JME Pennings
Lecturer(s)prof. dr. ir. JME Pennings
Examiner(s)prof. dr. ir. JME Pennings

Language of instruction:

English

Contents:

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

Learning outcomes:

At the end of the course the student:
- explain the different concepts and tools in commodity futures and options;
- apply these concepts 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. (1989). The Theory and practice of Future Markets. Lexington Books, 1989.
A course guide is available at the MCB secretariat (Mrs. Ellen Vossen).