Lecture 9 completes the discussion of the price of storage and provides
 an example of actual basis for Illinois corn.  Carter introduces 
foreign currency markets, how economic indicators impact currencies and 
interest rates. He talks about which economic variables affect currency 
prices.<br>

ARE139: Lecture 10, 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.