Class Notes

These are the lecture notes for FIN 451. Make sure to read the notes carefully and do the practice problems.

I have organized the notes in chapters that match closely to what we will be doing in class. The notes follow closely the slides and serve as a good complemente to dive deeper into the material.

Also, if you want to complement the notes with the textbook, the table below shows indicates the correspondance between my notes and chapters in Options, Futures, and Other Derivatives by John Hull, 10th Edition, Pearson.

Topic	Chapter in Textbook
Introduction	1.1–9
Interest Rates	4.1, 4.3–7
Forward Contracts	5.1–7, 5.10
Futures Markets	2.1–4, 2.11, 5.8–9, 5.11–14
Options Markets	10.1–5
Options Strategies	12.1–2, 12.4–5
Options Spreads	12.3
Properties of European Options	11.1–6
Binomial Pricing	13.1–2
Multiple Periods	13.3–4, 13.6–9