Lecture 11 outlines the three types of financial futures and how they 
are priced.  Professor Carter describes the characteristics of different
 debt instruments, bonds and eurodollars.  The role of interest rates in
 debt instrument markets.  He answers why financial futures have become 
so popular and how to read yield curves.
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ARE139: Lecture 12, 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.