Parkes' Financial Institutions and Markets Assignments Page
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Course Assignments:
March 3, 2008, 2:15 - 4:15 pm FINAL EXAM - All Chapters Covered!!
Thoughts for interest:
PAST ASSIGNMENTS:
Week 10
Monday, February 25, 2008 Chapter 24: Options and Swaps
Wednesday, February 27, 2008 Chapter 24: Options and Swaps REVIEW FOR THE FINAL EXAM!
Week 9
Monday, February 18, 2008 Chapter 23: Futures and Forward Contracts
- Bring your calculators today!!
- Day 17 PPT
- Mishkin's Chapter 23 PPT
- Chapter 23: Futures and Forward Markets
- Forward Markets
- What is a hedge?
- Pros and Cons of Forward Markets
- Futures Markets
- Financial Futures Contract
- Arbitrage
- Open Interest
- Globalization of Financial Futures Markets
- Credit Insurance Markets - The Next U.S. MBS Problem
- Other Interesting Tidbits
Wednesday, February 20, 2008 Chapter 23: Futures and Forward Contracts continued and Intro to Chapter 24: Options
- Bring your calculators today!! - Tutorial on Futures Today - Homework assigned is Due Monday
- Day 18 PPT
- Chapter 23: Hedging
- Margin Requirements
- Managing Interest Rate Risk
- Micro and Macro Hedges - Basis Risk
- Stock Index Futures
- Economics in the News
January 24 - February 17, 2008 SPRING FESTIVAL - HAPPY NEW YEAR!!
The GDP numbers are in! 4th Quarter up 0.6%, lower than expected! Click on Real GDP for the WSJ report!
Imports up only 0.3%, prices up 2.7% - core PCE index THIS IS TOUGH! Outside the Fed's range! INFLATION IS HIGH TOO! STAGFLATION!
Week 8
Monday, January 21, 2008 Chapter 16: Commercial Bank Industry
Chapter 16: The Commercial Bank Industry
- Historical Development
- Structure of U.S. Commercial Banking
- Bank Consolidation
- Separation of Banking and Securities Industries
- International Banking
- Financial Innovation
The BALANCE SHEET! - Tutorial
FDIC Statistics at a Glance - Banking Industry as of Sept. 2007
Bank Rating Services - FDIC
Ben Bernanke speaks! - The semi-annual presentations to the U.S. Congress
Who is Ben?!
Wednesday, January 23, 2008 Chapter 17: The Savings Associations and Chapter 19: Insurance Companies
Two days of Asian stocks crashing and the FED MOVES! 3/4%! Fed Funds at 3.5%!
- Bring your calculators today!!
- Day 16 PPT
- Chapter 17: The Savings Associations and Credit Unions
- Savings and Loans - the Crisis and Resolution - Also NOW
- Credit Unions - how they differ from Banks and Savings
- Financial Institutions - Summary
- Mishkin's Chapter 17 PPT
- Chapter 19: Insurance Companies and Pension Funds
- Insurance Industry
- How does adverse selection apply to the insurance industry?
- How does moral hazard apply to the insurance industry?
- Other issues with insurance companies
- Mishkin's Chapter 19 PPT
Week 7
Monday, January 14, 2008 Chapter 12: The Foreign Exchange Market
- Bring your calculators today!!
- Day 13 PPT
- Mishkin's Chapter 12 PPT
- Chapter 12: The Foreign Exchange Market
- What are Exchange rates? - Prices!
- Exchange Rates in the Long-Run
- The Law of One Price
- Purchasing Power Parity
- Factors affecting Long-Run Exchange Rates
- Relative Prices
- Tariffs and Quotas
- Preferences
- Productivity
Exchange Rates in the Short-Run
Wednesday, January 16, 2008 Chapter 12: The Foreign Exchange Market continued
- Bring your calculators today!!
- Day 14 PPT
- Discussion on two topics:
Required Reserves kept in dollars and
the appreciation of the yuan at China Economic Review.
- Chapter 12: The Foreign Exchange Market continued
- Exchange Rates in the Short-Run
- Expected Returns - Domestic versus Foreign
- The Interest Parity Condition
- Equilibrium in the Foreign Exchange Market
Explaining Changes in Exchange Rates
- Do #8 on page 360 for Monday's class - 5 points
Week 6
Monday, January 7, 2008 Midterm Exam
- Bring your calculators today!!
- Midterm Exam - All Material we have covered!
- Day 11 PPT
Wednesday, January 9, 2008 Chapter 12: The Foreign Exchange Market
Week 5
SATURDAY, December 29, 2007 Stocks AND Chapter 11: The Mortgage Markets
- Bring your calculators today!!
- Remembering Valuation of Bonds and Stocks
- Day 9 PPT
- Mishkin's Chapter 11 PPT - Mortgages
- Chapter 11: The Mortgage Markets
- Characteristics of the Residential Mortgage
- Mortgage interest rates
- Points
- PMI
- Mortgage Loan Amortization
- Computing the Payment on a Mortgage
January 2, 2008 Chapter 11: The Mortgage Markets continued
- Bring your calculators today!!
- Day 10 PPT
- Chapter 11: The Mortgage Markets
- Types of Mortgage Loans
- Conventional or Standard
- ARMs
- Others
- Secondary Mortgage Market
- Mortgage Backed Securities
Week 4
December 24, 2007 Chapter 10: The Bond Markets continued and Introduction to Chapter 11: The Stock Markets
December 26, 2007 Chapter 11: The Stock Markets continued
- DUE TODAY: Choose a US company - NYSE or NASDAQ, give the ticker symbol and latest dividend.
- Bring your calculators today!!
- Day 8 PPT
- Capital Market Financial Instruments
- US Government Agency securities
- State and Local Gov't
- Corporate Stocks
Remembering Valuation of Bonds and Stocks
Week 3
December 17, 2007 Chapter 9: The Money Markets
December 19, 2007 Chapter 10: The Bond Markets
Notice in Edition 5 of Mishkin's Textbook, Chapter 11: Stock Markets, is a separate chapter.
Capital Rates
For Monday, December 24 find the current 10 yr. U.S. Treasury Note rate, 30 yr. U.S. Treasury Bond rate,
average corporate bond AAA and BBB rates (see p. 293), and the a recent municipal bond rate. (5 pts)
Week 2
December 10, 2007 Chapter 2: An Overview continued AND Chapter 9: The Money Markets
December 12, 2007 The Fed, Economic Indicators and Markets, also revisiting Financial Managment
- Bring your calculators today!!
- Problem Set 2 handed out today - Interest rate calculations
- Day 4 PPT
- Fed Cuts NY Times Article
- Money Rates - Note that data may be found in the Federal Reserve Board of Governor's website.
- For Monday, December 17 find the prime rate,
near closing bid Fed Funds rate,
commercial paper rate, T-Bill rate and LIBOR rate. Hint see p. 273. (5 pts)
- Is the Fed on a NEW Monetary Policy model?
Week 1
December 3, 2007 Chapter 1 and 2: An Overview of the Financial System
- Review the Final Exam from Financial Managment
- An Introduction to Financial Institutions and Markets
- Financial Markets
- Debt Markets and Interest Rates (SHIBOR)
- Graph - T-Bills versus US Gov't Bonds versus Corporate Bonds - what's the difference? Page 5
- "The interest Rate" - notice that (mostly) all interest rates track together
- Stock Markets
- Foreign Exchange Markets
- The Yuan Appreciates above 7.4 rmb per dollar
- Central Banks - the Fed, the PBC (People's Bank of China)
- The Money Supply and Financial Intermediaries
- Problem Set I will be handed out. The PS is due Monday, December 10 at the beginning of class for 15 points.
- What is a price index and how do we calculate them? CPI, GDP deflator
- Growth rates (inflation rate) will also be calculated.
- Bring your calculators today!!
- Day 1 PPT
December 5, 2007 Chapter 2: An Overview of the Financial System (continued) and Introduction to Ch. 9
- QUIZ - the 3 Goals of any MACROECONOMY! and 3 indicators!
- Review the price indices homework, questions?
- What is the value of any index at the base year?
- Finish parts b, c, d and e of Problem Set 1
- A Bank's Liabilities - IOUs (What's an IOU?) What is money?
- Central Banks - the Fed, the PBC (People's Bank of China)
- PBC's "Tight Monetary Policy"
- The Structure of Financial Markets
- Debt Markets
- Stock Markets
- Banks - Money Markets and Captial Markets
- Day 2 PPT
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email: andrew at andrewparkes.com
Last Update: December 9, 2007
By Andrew L. H. Parkes, Ph. D.