Problem Sets

Finance 4366 problem sets are available here, and must be uploaded in PDF format to the Assignments section of the Finance 4366 Canvas site prior to the beginning of class on the day that is listed for each assignment:

  1. Complete the Student information survey, sign up for your free WSJ student membership at https://wsj.com/ActivateBaylor, and subscribe via email to the course blog – due January 20
  2. Problem Set 1 (Math Review) – due January 24
  3. Problem Set 2 (Stat Review) – due January 31
  4. Problem Set 3 – Questions based on the “Determination of Forward and Futures Prices” and “A Simple Model of a Financial Market” readings – due February 9
  5. Problem set 4 – Questions based on the “Properties of Stock Options” reading – due February 14
  6. Problem set 5 – Questions based on the “Trading Strategies Involving Options” reading – due February 16
  7. Problem set 6 – Questions based on the “Binomial Trees” reading – due March 16
  8. Problem set 7 – Questions based on the Cox-Ross-Rubinstein (binomial) option pricing formula and its convergence to the Black-Scholes-Merton (continuous) option pricing formula  – due March 23
  9. Problem set 8 – American Options – due April 4
  10. Problem set 9 – Questions based upon the “Wiener Processes and Ito’s Lemma” reading – due April 11
  11. Problem set 10 – Questions based on the  “Credit Risk and Options Theory” lecture – due April 27