Finance II

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Rules:
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• Completion of the laboratories will be based on the results of the final test.
• The maximum number of points on the final test is 100.
• There might be short tests during the semester (at the begining or/and at the end of the laboratories). These could allow to collect bonus 15 points. Points for one correcltly answered question = 15 / number of short test questions within the semester
• Final score is a minimum of: {closing test points + short tests points, 100}
• Example 1: One gets 70 points on closing test and 9 points on short tests. Final points: 79 (70 + 9)
• Example 2: One gets 60 points on closing test and 9 points on short tests. Final points: 69 (60 + 9)
• Example 3: One gets 92 points on closing test and 12 points on short tests. Final points: 100 (92 + 12 = 104 and capped at 100)
• As examples show, one do not need additional points from short tests for regular completion, however they substantially boost your chances to get better score and in some cases to complete the laboratories.
• There are maximum 3 unexcused absences. Students with more than 3 absences are not allowed to take final test.

• TERM STRUCTURE OF INTEREST RATES – chapter 4 Interest Rates
• FUTURES AND FORWARD CONTRACTS – chapters: 3 Hedging Strategies Using Futures, 5 Determination of Forward and Futures Prices, 6 Interest Rate Futures
• OPTIONS Part I – chapters 10 Mechanics of Options Markets, 11 Properties of Stock Options
• OPTIONS Part II – chapter 12 Trading Strategies Involving Options
• OPTIONS Part III – chapters: 13 Binomial Trees, 15 The Black-Scholes-Merton Model, 17 Options on Stock Indices and Currencies, 19 Greek Letters
• OPTIONS Part IV – as above