A Finance 4366 student asked me for midterm 1 exam study tips. I recommend reviewing problem sets 3-5 and the sample midterm – solutions for which are available at http://derivatives.garven.com/category/problem-set-solutions/. It also wouldn’t hurt to review the assigned readings and lecture notes on which the exam is based:
Assigned Readings:
| January 31 | 1. Hull Chapters 1 (“(Introduction”), 2 (“Mechanics of Futures Markets”), 10 (“Mechanics of Options Markets”) 2. Futures and Options Markets (Optional), by Gregory J. Millman |
| February 2 | 1. Hull Chapter 5 (“Determination of Forward and Futures Prices”) 2. A Simple Model of a Financial Market, by James R. Garven |
| February 9 | 1. Hull Chapter 11 (“Properties of Stock Options”) 2. Properties of Stock Options Chapter synopsis, by James R. Garven |
| February 14 | Hull Chapter 12 (“Trading Strategies Involving Options”) |
Lecture Notes:
- Introduction to Options, Futures, and Other Derivatives (January 31)
- Replicating Portfolio approaches to Pricing Forwards and Futures, and Pricing Options (February 2-7)
- Properties of Stock Options (February 9)
- Trading Strategies Involving Options (February 14)