• Course Overview

The objective of this class is to provide students with a basic understanding of the stock and currency options market. Topics include the mechanics of the options markets, stylized behaviors of stock and currency options, basic trading strategies involving options, and the basic pricing and hedging methodologies for options.  

• Readings

The required textbook for this class is: 

John Hull, Options, Futures, and Other Derivatives, 6th edition, Prentice Hall.

You can find supporting materials for this book from the author's homepage, including pdf files of the book chapters:

http://www.rotman.utoronto.ca/~hull/

I have also set up a homepage for this class that tracks the progress of the class (including exam dates) and provides supporting materials:

http://faculty.baruch.cuny.edu/lwu/9797/fin97972008s.html

• Office Hours

• Tuesdays, 4-6pm.

• By appointment. Vertical Campus 10-247. Tel: (646)-312-3509. 

The best way to get in touch with me is via email: Liuren_Wu@baruch.cuny.edu. 

• Homework, Exams, Grades, and Class Policies

• There will be two exams: one midterm and one final. Exams are not cumulative, but the topics are built on each other. 

• Your course grade will be based on a weighted average of the two exams, with a 70% weight on the higher score and a 30% weight on the lower score. The numeric average scores are converted into letter grades according to the following conversion table:

  >=93	100	A
  >=90	<93	A-
  >=85	<90	B+
  >=80	<85	B
  >=75	<80	B-
  >=70	<75	C+
  >=65	<70	C
  >=50	<65	C-
  0	<50	F

• For the exams, you can bring in a formula sheet (letter-size). Students are absolutely forbidden to talk to one another, even for things unrelated to the exam. All questions should be addressed to me. Violations lead to an F to the class.

• You must notify me one week in advance if you are unable to attend an exam. Otherwise, you will receive a zero for that exam.

• You will need a calculator for exercises that we do in class and also for the exams.

• Cell phones, beepers, alarms, etc, must be turned off before you enter the class.