Lecture Notes

Lecture notes (and related spreadsheets) for Finance 4366 are available here:

  1. Introductory Lecture (January 17)
  2. Mathematics Tutorial (January 19)
  3. Statistics Tutorial, Part 1 (January 24)
  4. Statistics Tutorial, Part 2 (January 26)
  5. Introduction to Options, Futures, and Other Derivatives (January 31)
  6. Replicating Portfolio approaches to Pricing Forwards and Futures, and Pricing Options (February 2-7)
  7. Properties of Stock Options (February 9)
  8. Trading Strategies Involving Options (February 14)
  9. Midterm Exam #1 Review Session (February 16)
  10. Midterm Exam #1 (February 21)
  11. Binomial Trees (February 23 – March 21)
  12. Early Exercise of American Call and Put Options on Non-Dividend Paying Stocks and Dividends and American Options (March 23)
  13. Wiener Processes and Ito’s Lemma (March 30-April 6)
  14. Actual versus Risk Neutral Probability of a Call Option Expiring in-the-Money (April 6)
  15. Midterm Exam #2 Review Session (April 11)
  16. Midterm Exam #2 (April 13)
  17. Credit Risk and Options Theory (April 18-25)
  18. The Black-Scholes-Merton Model (April 25-27)
  19. Greek Letters (May 2)
  20. Review and Summary of the course (May 4)