ECONOMICS OF COMMODITY FUTURES MARKETS
Course Syllabus and Reading List
FALL 2011
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Meeting

Date

Topics and Assignments

1

9/7

Course Introduction

2

9/8

Origin and Development of Futures Markets 

Internet Reading: A Short Course introducing Commodity Markets & Futures Trading  (parts 1-10), CME Futures and Options –This free manual is posted on Sakai read Chapters 1 and 2.   Keep the manual for future assignments)

3, 4

9/12
9/14

Economic Justification of Futures Markets 
Trading Stocks vs. Trading Commodities 


 Getting Started in Futures Chapters 1, 2 and 3 

Internet Reading: How Low Can It Go? Stock Market Circuit Breakers
                                        Please not that this article is from 1998 when the circuit breakers were last changed.

5, 6

9/19
9/21

The Basics 

  • Facts and Figure
  • Calculating Contract Values
  • Reading the Financial Pages

Getting Started in Futures - Chapters  6, 17, 18, 19

Internet Reading: Calculating the Dow Jones Industrial Average Read all links in the article pertaining to the stock averages
Finance Corporate Debt Ratings Moody's and S&P
Optional Reading: How to Value Stocks. 

7

9/26

Using the Internet as an Information Source
Bring your laptops or other internet devices if you have them

8

9/28

Mutual Funds and Managed Futures Funds
 Getting Started in Futures  Chapter 14

Internet Readings

9,10

10/3
10/5

Placing and Executing Market Orders 

  • Mechanics of Orders
  • Types of Orders

Getting Started in Futures Chapter 7

CME Futures and Options   Chapter 4

11,12

10/10
10/12

The Participants in Futures Markets

 
Getting Started in Futures  Chapters 4 and 5

CME Futures and Options  Chapters 3 and 5

13

10/17

Futures Exchanges & The Clearing House or Exam Review
Getting Started in Futures    Chapter 8

14

10/19

First Hourly will be either October 19th or 24th - Bring a calculator that does not store text.  Graphing calculators (which include most financial calculators), phones, and PDAs are prohibited.  I am taking a hard stance this year.  If you bring in a Financial/Graphing calculator you will end up taking the exam without a calculator

15

10/24

First Hourly will be either October 19th or 24th - Bring a calculator that does not store text.  Graphing calculators (which include most financial calculators), phones, and PDAs are prohibited.  I am taking a hard stance this year.  If you bring in a Financial/Graphing calculator you will end up taking the exam without a calculator

16,17

10/26
10/31

Technical Analysis

  •  Bar Charts and Their Interpretation
  • Computerized Methods

   Getting Started in Futures  Chapters 10, Appendix A and C

   CME Futures and Options  Chapter 8

    Internet Resources:

 (You will not be tested on information we do not cover in class)

18,19

11/2
11/7

Fundamental Analysis


Getting Started in Futures   Chapter 9 

CME Futures and Options  chapter 8

20

11/9

Technical Analysis Using the Web and Microsoft Excel
   Bring your laptops or other internet devices if you have them

21


11/14

Margin Requirements and Procedures     

 

Getting Started in Futures   Chapter 6

Internet Reading: How To Margin Commodity Futures

  • Determining Account Status
  • Marking to Market

22

11/16

Options
   Getting Started in Futures  Chapter 15

23,24

11/21
11/28

Cash vs. Futures Prices: The Basis

CME Futures and Options  Chapter 6

  • Local Basis
  • Carrying Charges
  • Arbitrage 

25

11/30

Spread Trading
CME Futures and Options Chapter 7

26

12/5

Rules and Regulations
Getting Started in Futures Chapter 16

27

12/7

Review for Exam or Exam* (see below)

28

12/12

EXAM 2 *  Bring a calculator that does not store text.  Graphing calculators (which include most financial calculators), phones, and PDAs are prohibited.  I am taking a hard stance this year.  If you bring in a Financial/Graphing calculator you will end up taking the exam without a calculator.

* Exam 2 is not cumulative.  There will be no Final Examination for the course.  It is possible that the final exam will be moved to December 7, 2011 if we can cover all of the materials by that date.  

SCHEDULE MAY BE SUBJECT TO CHANGE
 
 
 

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