Futures and Options: Theory and Applications

Part I: Institutional background. Introduction to futures and options. Functioning of futures and options markets. Part II: Futures. Structure of futures prices and the basics. Hedging with future contracts. Risk and rerun in future contracts. Agricultural futures. Stock index futures. Interest rate futures. Currency futures. Part III: Options. Structure of option prices. The put-call. Determinants of options prices. Hedging with options. Common stock options. Stock index options. Interest rate options. Currency options. Part IV: Finanicial Innovation.