1. AAEC 4317/5317 Commodity Futures Trading Analysis / Financial and Commodity Futures and Options Fall 2015 Class Hours: 11:00-12:20 AM, TR, AGSC 311
Instructor: Shaikh M Rahman
Telephone: (806)
Office: 307-A, Ag. Science Building
Office Hours: 10:00 AM – 11:00 AM, TR and by appointment

2. AAEC 4317/5317 Outline
An introduction to futures contracts and futures markets
Mechanics of buying and selling futures
Trading methods and strategies – Fundamental and Technical Analyses
Cash vs. futures prices
Arbitrage and speculation
Spreading with futures
Hedging with futures
Fundamentals of options – option pricing
Options on futures
Speculating, spreading, and hedging with options on futures

3. AAEC 4317/5317 Expected Learning Outcomes
Provide a solid grounding on commodity futures and options trading.
Provide a hands-in experience on commodity futures and options trading.
An economic perspective will be used to analyze the functions and mechanics of the futures and options markets for commodities and financial instruments.
The goal is to integrate an understanding of these markets into specific economic situations in order to improve the decision-making process.
Getting students ready for the job market.

4. AAEC 4317/5317
Required Texts
An Introduction to Futures and Options, Student Manual, CME
Futures & Options (1992), Franklin Edwards and Cindy Ma, McGraw-Hill Inc.
Authorized copies of selected chapters are available for purchase at “The Copy Outlet,” 2402 Broadway, (806)
Useful Web Links

5. The Learning Process: Methods of Assessing Learning Outcomes
Class Attendance and Participation
Each student is expected to attend every class period, be prepared to respond to questions in the class, and summarizing the materials covered in the previous class and unannounced quizzes when given.
Students are also encouraged to ask questions related to the course topics.
Class attendance will be checked regularly.
If you miss a class, it is your responsibility to make up anything missed.
Absences may be excused only in cases of serious illness (doctor’s note is required) and complementary academic activities (advance proof of participation is required).

6. AAEC 4317/5317 Quizzes: Homework Assignments:
There will be several quizzes throughout the semester.
Any missed quiz will receive a grade of zero.
The lowest score of the quizzes will be dropped.
 Homework Assignments:
There will be five homework assignments for practice.
Each homework will be primarily on problem solving.
These will not carry any grade, but useful for exams.
You are required to solve the problems before due dates
You will be called to solve at least one problem on the board – your participation will add 1 bonus point to your final grade

7. AAEC 4317/5317 Project Assignment Exams:
There will be one project assignment on hedging
Exams:
There will be two mid-term exams and one final.
Mid-term exam 1: Thursday, 08 Oct. 2015, 9:30 – 10:50 AM
Mid-term exam 2: Thursday, 05 Nov. 2015, 9:30 – 10:50 AM
Final Exam: Saturday, 07 Dec :30 – 10:00 AM
The exams will include several true/false and multiple choice questions, short questions, and analytical problems.
There will be no makeup exam.
Any missed exam will have a grade of zero. 

8. AAEC 4317/5317 Trading Simulation Game:
Each student will actively participate in a futures and options trading simulation game available at
Each student is required to make at least 10 offsetting transactions.
Keeping a journal of all transactions with fundamental and technical analysis is also required. Each student will have to write a paper on his/her transactions and trading strategies.
Nov 24 will be the last day of trading, and students have to submit the trading experience paper by Nov 30, 2015.

9. AAEC 4317/5317 Research Project (Applicable to 5317):
Each graduate student is required to write a paper on a research topic relevant to the course material.
The paper may be conceptual or empirical in nature.
The reference style of the Journal of Futures Markets should be followed.
The time-line for submission is as follows:
The topic and outline: Sep 24, 2015
First draft: Oct 29, 2015
Final draft: Nov 30, 2015

10. Methods of Assessing Learning Outcomes Distribution of Grades
Quizzes – 10% of the final grade
Exams – 60% of the final grade
2 mid-terms and a final exam – each worth 20% of the final grade
Project Assignment – 15% of the final grade, 10% for grads
Trading experience – 15% of the final grade, 10% for grads
Participation (minimum 10 transaction) – 5%
Trading experience paper – 10% for undergrads and 5% for grads
Research Paper (App. to 5317) – 10% of the final grade
Class Attendance
Every unexcused absence over two will lower final grade by 1 point.
Students with one unexcused absence will receive 2 bonus points
Students with perfect attendance will receive 4 bonus points
Class Participation – 1 bonus point for solving homework in class

11. AAEC 4317/5317
Grading Scale: Final grades will be assigned using the following scale:
A = %
B = %
C = 70-79%
D = 60-69%
F = 0-59%

12. AAEC 4317/5317 Expectations and Suggestions:
Attend every class, take notes and participate (do not hesitate to ask questions)
Do the homework regularly, giving a good-faith effort to every problem
Form a study group -- your fellow students are often the best teachers
Be prepared to respond to questions in class
Be prepared to summarize the materials covered in the previous class
Be prepared for unannounced quizzes when given
Keep up with economic news in newspapers, radio & TV programs
Spend approximately 10 hours per week (apart from class hours) reading and working on homework assignments
Take the exams entirely on your own