MKTG 3961 Commodities Futures and Options - Week One

Flashcards covering the vocabulary, objectives, and resources introduced in the first week of MKTG 3961 at The University of Queensland.

Ammar Abdul Aziz

The Professor for MKTG 3961 who specialized in advanced options and futures trading and whose research focused on the lead-lag relationship between futures and the underlying cash index.

Course Aim of MKTG 3961

To develop skills to formulate and manage an appropriate price risk management strategy for an agricultural commodity and evaluate the effectiveness of that strategy.

Risk Management Instruments

Specific tools available to agribusinesses to mitigate price risk, including pools, forward contracts, hectare contracts, multi-grade contracts, futures, and options.

StockTrak

A global portfolio simulation platform used in the course for speculating, allowing students to trade stocks, options, futures, bonds, mutual funds, future options, and forex across 50 global exchanges.

Commodity Challenge

A simulation tool that helps users learn the processes of grain marketing, specifically simplified for crops like corn, soybeans, and wheat, in a cost-free and risk-free environment.

Lead-lag relationship

The specific research area of Ammar Abdul Aziz focusing on the connection between futures and the underlying cash index.

Speculator

The role a player takes on in the StockTrak simulation to trade agricultural products such as corn, soybean, and wheat.

Hedging

The application of commodity derivatives used to effectively manage and mitigate the price risk associated with agricultural production.

Williams, J., and Schroder W., (1999)

Authors of the course textbook titled 'Agricultural Price Risk Management: The Principles of Commodity Trading'.

Geman, H. (2005)

Author of 'Commodities and commodity derivatives: Modeling and pricing for agriculturals, metals and energy', a key course resource.

Hull, J. (2015)

Author of the reference material 'Options, futures, and other derivatives'.

Schwager, J. D. (2012)

Author of 'Market wizards: interviews with top traders', listed as a resource for the course.