ECONOMICS OF COMMODITY FUTURES MARKETS
Course Syllabus and Reading List
FALL 2009
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Meeting

Date

Topics and Assignments

1

9/2

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

9/9
9/14

Economic Justification of Futures Markets 
Trading Stocks vs. Trading Commodities 
   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

9/16
9/21

The Basics 

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


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

9/23

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
   Chapter 14

Internet Readings

9,10

9/30
10/5

Placing and Executing Market Orders 

  • Mechanics of Orders
  • Types of Orders

 Chapter 7

 

11,12

10/7
10/12

The Participants in Futures Markets 
   Chapters 4 and 5

Internet Reading CME Futures and Options (Chapters 3 and 5)

13

10/14

Futures Exchanges & The Clearing House 
   Chapter 8

14

10/19

Review for Exam – I may try to move the first exam up to October 19th.

15

10/21

First Hourly  - 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
10/28

Technical Analysis

  •  Bar Charts and Their Interpretation
  • Computerized Methods

    Chapters 10, Appendix A and C
    Internet Resources:

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

18,19

11/2
11/4

Fundamental Analysis
    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


11/11

Margin Requirements and Procedures                                                                                                                          Chapter 6

Internet Reading: How To Margin Commodity Futures

  • Determining Account Status
  • Marking to Market

22

11/16

Options
    Chapter 15

23,24

11/18
11/23

Cash vs. Futures Prices: The Basis

CME Futures and Options (chapter 6)

  • Local Basis
  • Carrying Charges
  • Arbitrage 

25

11/25

Spread Trading
CME Futures and Options (chapter 7)

26

11/30

Rules and Regulations
Chapter 16

27

12/2

Review for Exam

28

12/7

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.

SCHEDULE MAY BE SUBJECT TO CHANGE
 
 
 

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