UGA Bulletin

Course Description

Development, functions, and importance of futures and option markets. Futures and option contracts; issues such as speculation, the roles of commission houses, commodity exchanges, and clearinghouses; and the use of future contracts as instruments for financing business activities. Technical and fundamental trading theories.

Additional Requirements for Graduate Students:
Graduate students are required to write a research paper, in addition to all other requirements of the class, which are weighted differently from those required of undergraduates. The topic of the research paper must be relevant to futures and options trading, hedging, or regulatory changes in the industry, past or future. The topic must be approved by the instructor, and the research paper must be suitable for presentation at regional/national professional meetings and/or submission to a journal such as The Journal of Futures Markets. An approved brief outline is due first, followed by a more detailed outline and list of references. The first draft of the paper is due one to two weeks before the end of class, and the final draft is due on the last day of class

Athena Title

Futures and Option Markets

Prerequisite

(AAEC 3580-3580L or AAEC 3580E or ECON 4010) and (AAEC 3690 or FINA 3000 or FINA 3000E or FINA 3000H or FINA 3001 or FINA 3001E or FINA 3001H)

Semester Course Offered

Offered spring

Grading System

A - F (Traditional)

Student Learning Outcomes

Students will explain the foundational principles of futures and options markets, including their terminology and mechanics, and evaluate their role in price discovery and risk management.
Students will analyze and evaluate hedging strategies using futures and options contracts to mitigate risk in financial markets.
Students will design and implement a trading strategy on a simulated platform to apply theoretical knowledge to practical scenarios, optimizing profit while managing risk.
Students will assess the pricing and valuation of futures, forward, and options contracts using fundamental economic principles and quantitative methods.
Students will assess the pricing and valuation of futures, forward, and options contracts using fundamental economic principles and quantitative methods.

Topical Outline

1. mechanics of futures and option markets
2. hedging strategies using futures and options
3. short- and long-term interest rates
4. pricing of futures and forward contracts

Institutional Competencies

Analytical Thinking

The ability to reason, interpret, analyze, and solve problems from a wide array of authentic contexts.

Critical Thinking

The ability to pursue and comprehensively evaluate information before accepting or establishing a conclusion, decision, or action.

Leadership & Collaboration

The capacity to engage in the relational process of optimizing personal and collective strengths toward a common goal.

Syllabus

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