Category Archives: Assignments

Problem Set 1 hint…

Problem Set 1 is due at the beginning of class on Tuesday, January 16. Here is a hint for solving the 4th question on problem set 1.

The objective is to determine how big a hospital must be so that the cost per patient-day is minimized. We are not interested in minimizing total cost; if this were the case, there would be no hospital because marginal costs are positive, which implies that total cost is positively related to the number of patient-days.

The cost equation C = 4,700,000 + 0.00013X2 tells you the total cost as a function of the number of patient-days. This is why you are asked in part “a” of the 4th question to derive a formula for the relationship between cost per patient-day and the number of patient days. Once you have that equation, then that is what you minimize, and you’ll be able to answer the question concerning optimal hospital size.

How to know whether you are on track with Finance 4366 assignments

At any given point in time during the upcoming semester, you can ensure that you are on track with Finance 4366 assignments by monitoring due dates which are published on the course website. See for due dates pertaining to reading assignments, and for due dates pertaining to problem sets. Also keep in mind that short quizzes will be administered in class on each of the dates indicated for required readings. As a case in point, since the required readings entitled “Optimization” and ” How long does it take to double (triple/quadruple/n-tuple) your money?” are listed for Thursday, January 11, this means that a quiz based upon these readings will be given in class on that day.

Important assignments due on the second class meeting of Finance 4366 (scheduled for Thursday, January 11) include: 1) filling out and emailing the student information form as a file attachment to, 2) subscribing to the Wall Street Journal, and 3) subscribing to the course blog. A completed Student information form is graded as a problem set and receives 100 points; if you don’t turn in a Student information form, then you will receive a 0 for this “problem set”. Furthermore, tasks 2 and 3 listed above count toward your class participation grade in Finance 4366.

Instructions for subscribing to the Options, Futures and Other Derivatives Course Blog

A course blog has been established for Finance 4366 at the address; it is also linked from the “Course Blog” button located on the course website. I recommend that you follow the options, futures, and other derivatives course blog regularly via email, RSS, Facebook, and/or Twitter.

The options, futures, and other derivatives course blog provides me with a convenient means for distributing important announcements to the class. Topics covered on the course blog typically include things like changes in the course schedule, clarifications and hints concerning problem sets, information about upcoming exams, announcements concerning extra credit opportunities, and short blurbs showing how current events relate to many of the topics which we cover in Finance 4366.

If you already are familiar with RSS, this is a great way to subscribe to the options, futures, and other derivatives course blog. By going to the webpage, you can subscribe by using Firefox’s Live Bookmarks feature, Internet Explorer’s RSS feed subscription feature, or an RSS reader. If you are either a Facebook or Twitter user, everything that is posted on the options, futures, and other derivatives course blog is automatically posted to Facebook and “tweeted”, so you can also subscribe by “liking” the Finance 4366 Facebook page or by “following” @fin4366 on Twitter. Finally, you can also subscribe via email. The remainder of this blog entry explains how to subscribe to the options, futures, and other derivatives course blog via email.

Email Subscription Instructions:

Email Subscription Instructions: If you would like to receive the risk management course blog via email, you can do this by going to and entering your email address in the form provided on the right hand side of that webpage:

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After clicking “Subscribe”, the following information will appear on your screen: success

Next, check for an email from “Options, Futures, and Other Derivatives <>”:

Please confirm

Next, simply click the “Confirm Follow” button. This will cause you to receive the following email:


From that point forward, whenever I post to the course blog, you will immediately receive a nicely formatted version of the blog posting via email. Also, you can opt to change your delivery preferences, or even cancel your subscription.

How to obtain a Spring 2018 Wall Street Journal subscription

A subscription to the Wall Street Journal is required for Finance 4366. In order to subscribe to the Wall Street Journal (WSJ) for the Spring 2018 semester, go to  Your WSJ subscription includes access to print, online, tablet and mobile editions, and only costs $1 for a 15 week subscription.  At your option, you may choose to receive both the digital and paper versions of WSJ or only the WSJ digital version.

Throughout the semester, I will often reference specific WSJ articles in class and on the course blog. Finance 4366 topics (as well as topics in many of your other business school courses) come to life in the world outside the Baylor bubble when you read make a habit of reading the WSJ on a regular basis. Furthermore, if you expect to interview for jobs or internships anytime soon, reading the WSJ will give you a leg up on the competition, since you will be better informed and have more compelling ideas and insights to share with recruiters.

In closing, the following (2 minute) video provides a helpful introduction to the WSJ, providing time-saving tips to help you get the most from WSJ and succeed not only in Finance 4366, but also your other courses and careers: