ECC4750

Hedging and uncertainty

(BUS)

Dr Barry Goss

7 points + Two 1.5 hour lectures per week + Second semester + Clayton + Prerequisite: ECC4650 or equivalent

Synopsis: Theories of hedging and speculation; determination of spot and futures prices, and intertemporal allocation; forward pricing and market efficiency; expectations, including adaptive expectations and rational expectations; feasibility conditions for an organised futures exchange.

Assessment: Written (5000-word research project): 70% + 3000-word class paper and oral presentation: 30%