Lecture 6 gives examples of treasury-bond trading, pricing, profit-loss 
calculation, basis points, interest-rate expectation, and of currency 
trading are discussed. These are followed by video showing trading 
action on the floor of the NY Mercantile Exchange and the Chicago Board 
of Trade.<br>

ARE139: Lecture 7, Fall 2015

This course focuses on the institutional structure and economic functions of futures and options markets. Price formation in both commodity (e.g., corn, crude oil, cotton, and cattle) and financial (e.g., Eurodollar, Treasury Bonds, and stock indexes) futures and options markets will be examined in detail. The theory and practice of hedging will be explored in depth. Additional topics include: the theory of inter-temporal price formation for commodities and financials, common approaches used to forecast prices, statistical analysis of historical price behavior, and futures and options market regulation.