Option Markets

4 units · Graduate courses (200-299)

(Formerly numbered 232D.) Lecture, three hours. Requisite: Management-Executive MBA 408 or Management-Full Time MBA 408 or Management-Fully Employed MBA 408. Organization and role of organized derivative markets, including listed and over-the-counter (OTC) options and futures: arbitrage and hedging relationships, valuation of derivative trading strategies, and innovations in derivative markets. Students learn fundamentals of hedging and spreading by playing option trading game and writing term paper analyzing their strategies. Letter grading.