Economics 104
Financial Economics
Module 6 Futures Contracts

Complete these assignments below before the module has ended. Step one of the homework assignment (item 3 below) must be done during market hours if possible on either Monday, November 25 or Tuesday, November 26.

Reading assignments and tasks

1.      Between now and the end of the semester, read the book entitled The Lost Bank, which is assigned for the real estate section of the course. Although this is an entire book, it is a quick read and you should find it interesting. It is about the failure of Washington Mutual Bank in the real estate collapse and the role they played. Before beginning the book, look at these Questions about the Lost Bank, which will give some focus to the reading and, equally important, one of these questions will show up on the in-class portion of the final, which will be given on Thursday, December 13.

2.      Read Chapter 9 Futures Contracts (and make sure you read the ETF material at the end)

3.      Homework Assignment: Step one of this assignment, Calculating Settlement for Futures Contracts, should be done during market hours (any time during the day between early morning and 5:00 PM) on Monday or Tuesday, November 25th or 26th. This initial step should take no more than half an hour. Then you must go back and do settlement on your futures contract either the next day or the day after that to see how it affects your cash balance in the account. The homework is not collected but you must keep the homework including data from step 1 and step 2 to complete the third step, which will be taken as part of you take-home final. All of this will be turned in with your take-home final. This assignment will be discussed in class.