|
|
|
|
|
|
|
|
|
|
|
|
|
|
BA 444/544 Financial
Risk Management
OREGON
Contact Information:
Professor: Dave Berger, Ph D.
Office: BEXL 418D
Office hours: Monday/Wednesday 12:30-1:30; Tuesday 3:00-4:00; and by appointment
Phone: 737.2636
Email: dave.berger@bus.oregonstate.edu
Course Information:
Credits:
4
Prereqs:
BA 442
Meeting
times: Monday and Wednesday 2:00-3:50 in WB 205 (section 01)
Monday and Wednesday 4:00-5:50 in BEXL 103
(section 02)
Course
Description:
During
the course we will focus on financial hedging to manage risk. Students will
become familiar with financial derivatives (options, futures, forwards, swaps,
etc). For a given derivative, students will learn 1) how it is priced, 2) how
it can be used to hedge an underlying position, and 3) how it can be used to
undertake speculative positions.
Learning Outcomes:
Upon
successful completion of the course, a BA 444 student will:
- Analyze specific
operational/financial risks and apply appropriate hedging strategies.
- Analyze profit/loss profiles of financial derivatives and
demonstrate how these financial instruments can be used to undertake
speculative positions.
- Apply models to value financial derivatives and
comprehend how financial arbitrage affects these values.
- Apply correct hedging and speculation strategies using
market data.
-Exhibit awareness of reasons for
corporate risk management
In
addition to the above outcomes, a BA 544 student will:
- Evaluate corporate
hedging policies.
- Compile
similarities across recent cases of ‘derivative abuse,’ and recommend a policy
to prevent similar events in the future.
Student Evaluation:
|
BA 444 |
BA 544 |
||
|
3 in class tests |
85% (30% each for the two highest scores; 25% for the lowest score) |
3 in class tests |
75% (25% each) |
|
In class quizzes |
10% |
BA 544 Investment project |
10% |
|
Investment project |
5% |
Hedging policy paper |
7.5% |
|
|
|
Derivative abuse paper |
7.5% |
Tests: Students will be allowed to use a calculator and both sides of one 8.5x11 note page. Your note page must be hand-written and produced by yourself. Without PRIOR arrangements, no make-up tests will be given.
In class quizzes: There will be 13 possible quizzes (see schedule for dates) each graded as ‘satisfactory’ or ‘unsatisfactory’. Your score (of the possible 10%) will be determined by: Minimum(# of satisfactory scores, 10)/10. No make-up quizzes will be allowed.
Investment project: The investment project will involve applying concepts/strategies learned in class to real world data. Further details will be presented in class. See schedule for due dates. I will not accept late assignments.
BA 544 Student: See me to discuss assignment details
Learning Resources:
Introduction to Derivatives: Options, Futures and Swaps., R. Stafford Johnson, Oxford Press.
Additional articles/reading material will be announced in class and available on blackboard.
Students will also need a standard calculator.
Student Conduct:
The OSU College of Business strives to produce ‘profession-ready’ graduates. Students are expected to act accordingly in and out of class. Un-professional conduct will not be tolerated and penalties will be assigned at the instructor’s discretion.
Students will be held to the highest levels of academic integrity. Academic dishonesty includes, but is not limited to: cheating, fabrication, assisting, tampering, and plagiarism. Please refer to university definitions available at http://oregonstate.edu/admin/stucon/achon.htm. In the event of academic dishonesty an instructor ‘may impose any academic penalty up to and including an “F” grade in the course after consulting with his or her department chair and informing the student of the action taken.’
Students are responsible for all material/announcements in class, regardless of their attendance. I will strive to make your attendance worthwhile (the majority of exam material will be covered in class).
During class, active participation is encouraged and appreciated. I strive to create an active learning environment. Classes will consist of notes, group or individual problems and recent events.
As an instructor, I am available outside of class to help with the material. Please feel free to call/email/schedule an appointment or stop-by my office. If you need additional help, I strongly encourage you to see me as soon as possible. When meeting outside of class, your level of preparation will influence the success of our meetings.
Statement Regarding Students with Disabilities:
‘Accommodations are collaborative efforts between students, faculty and Services for Students with Disabilities (SSD). Students with accommodations approved through SSD are responsible for contacting the faculty member in charge of the course prior to or during the first week of the term to discuss accommodations. Students who believe they are eligible for accommodations but who have not yet obtained approval through SSD should contact SSD immediately at 737.4098.’
Tenative Schedule: Subject to change with advance notice
|
Winter Quarter 2009 |
||
|
Jan 5 |
Syllabus/Chapter 1 |
No quiz today |
|
Jan 7 |
Chapter 3 |
|
|
Jan 12 |
Chapter 4 |
|
|
Jan 14 |
Chapter 10 |
|
|
Jan 19 |
MLK holiday |
|
|
Jan 21 |
Chapter 17 |
|
|
Jan 26 |
Chapter 20 |
|
|
Jan 28 |
Test 1 |
|
|
Feb 2 |
Chapter 5 |
|
|
Feb 4 |
Chapter 6 |
2/4 Due: Investment project part 1 |
|
Feb 9 |
Chapter 11 |
|
|
Feb 11 |
Chapter 8 |
|
|
Feb 16 |
Finish and Review |
No quiz today |
|
Feb 18 |
Test 2 |
|
|
Feb 23 |
Chatper 13. Section 9.5 |
|
|
Feb 25 |
Chapter 14/IRP |
|
|
Mar 2 |
Chapter 15 |
|
|
Mar 4 |
Complete investment project |
3/6 Due: Final investment project No quiz today |
|
Mar 9 (dead week) |
Chapter 22 |
|
|
Mar 11 (dead week) |
Review |
No quiz today |
|
March 16-20 Finals |
Test 3 |
Section 1: 3/18 12:00 Section 2: 3/16 12:00 |