AEM 6410

Commodity Futures and Options

Course Description

Course information provided by the 2025-2026 Catalog.

This course focuses on markets for agricultural futures and options contracts. Lectures address hedging and risk management with futures and options as well as the structure of risk and random walks.

Enrollment Priority Enrollment limited to: graduate students.

Last 4 Terms Offered 2024FA, 2024SP, 2023SP, 2022SP

Learning Outcomes

• Explain the role of futures, options, and other derivatives in the pricing of agricultural products.
• Price forwards and options (pricing models).
• Explain the fundamental probabilities and dynamics describing asset risk.
• Develop and understand hedging and trading strategies with derivatives.
• Use derivatives to reallocate risk.
• Use derivatives for corporate risk management.
• Explain the financial crisis arose and how to prevent it.
• Explain how to design and value financially engineered products including exotic options and weather derivatives.

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