Fall 2014

FIN 3560

Financial Markets and Instruments

1. About the Course (Description, Syllabus, Schedule, etc.) — as of December 7, 2014.  FINAL EXAM is December 18 from 1-3 in Olin 120

2. Saunders and Cornett Financial Markets and Instruments WEBSITE — this is a GREAT website with a great deal of content!!!

3. Wall Street Journal

   •    Student Subscriptions  — enter your information, choose “Babson” as your school (ZIP is 02457) and then choose “Goldstein, Michael” as your Professor.

   •    Student Journal

4. Powerpoints

5. Solutions Manual — This is a zipped file and you will need a password that I will provide in class

6. Student notes

7. Duration Spreadsheet Example

8. Paul and Gianna get married — Mortgage Example

9. Suggested Questions from the end of the Chapters

10. Sample Questions

    1.  Limit Order Book and Answers

    2. More Cumulative Depth and Effective Spread questions (with answers)

    3. Sample stock and bond questions and Answers (for question #5, you just need to assume that g=5%. We didn’t cover that g=ROE*Plowback)  Also, the answer to #8 is $976.4801744.

    4. Bond and FX Problems and Answers

    5. Sample Final Questions

    6. Sample Limit Order Books from October 2nd class:  Section 1 and Section 2

11. Instructions for Second Midterm (Paper)  and GROUPS and TOPICS FOR 2014 (as of 9-28-2014)

12. Sample Second Midterm Papers:  2013 and 2012

13. Appendices

14. What you need to know

    •    Entire Course and Partial Answers

    •    Second Day and Answers

15. MetLife, Citigroup, and their Duration Gap and interest rate changes

16. Sample Press related to topics in this class:

1. Public Pricing of US Derivatives Nears, Threatening Bank Dominance, Reuters (Wednesday, Nov. 21, 2012)

2. Why High Frequency Trading Doesn’t Compute, Barron’s, (August 13, 2012)

3.  Risk Controls and Knight Capital, Reuters, (August 3, 2012)

4. SEC and NYSE data probe, Reuters, (August 6, 2012)

5. What is going on?  See News Hour with Jim Leher (Tuesday, January 22, 2008)

6. What about Diversification?  See News Hour with Jim Leher and Burton Malkiel  (Tuesday, Jan. 22, 2008)

7. What about the dollar?  Listen to me and Robin Young on WBUR/NPR’s Here and Now on Wednesday, Feb. 20, 2008.  Click here for link, then choose “Dollar Days”–or just click to go straight to the real audio clip.  Podcast is here.