Don M. Chance
Instructional Web Page

The links on this page send you to various sites with teaching related material.

Courses I teach:

In the spirit of open courseware, I offer a great deal of my course material freely to any and all.  You can use any of my ideas in your courses without attribution.  But if you do use my lecture notes and Powerpoints, do not plagiarize.  At least paraphrase things.  It is just a bad practice that you would not tolerate from your students.

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FIN 4850:  Financial Derivatives.  Here is the link to the latest syllabus.  This is the course on which my book is based, but I do not currently teach it.  Hence, the syllabus is a few years old.  Here's a link to my book.
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FIN 7400:  Financial Risk Management.  This is an advanced MBA elective course that teaches students how to identify, measure, and manage financial risk within a corporate environment.  This course is quite innovative and not likely to be found too many other places.  But this is what MBA's need to know, not the financial engineering so typically taught as an MBA elective because the professor thinks it's fun.  Here are the links to the latest syllabus and zip files of lecture notes and Powerpoints.
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BADM 7090:  Financial Management.  This course is the core course in finance taken by all of our MBA students (except a few who can opt out due to high grades in a finance undergraduate curriculum.)  Here are the links to the latest syllabus and zip files of the Powerpoints.  See also The 20 Principles of Financial Management and Financial Management Decisions, a two-page Powerpoint file with diagrams of the flows involved in the investment and financing decisions.

The remainder of my course materials are on the Blackboard web site, which requires enrollment in the course for access, but with the exception of old exams, I would probably send you just anything else.

Teaching Notes:

The following items are called Teaching Notes.  These are short technical notes in pdf format.  I use them to fill in material not covered or not adequately covered in a specific book I might be using.  Every effort has been made to ensure typographical and technical accuracy, but no guarantees are made.  If you find any errors, please let me know.

FONT PROBLEMS?  Many of these files were created when I used WordPerfect.  I then converted them to Word but in some cases, they retained old fonts from WordPerfect.  You may have trouble reading some of these due to font difficulties.  If you do, please let me know (dchance@lsu.edu) and I will fix it.

bullet Mathematical, Statistical, and Economic Foundations
bullet Teaching Note 97-01:  The Normal Probability Distribution (July 18,2008)
bullet Teaching Note 97-05:  The Bivariate Normal Probability Distribution (July 23, 2008)
bullet Teaching Note 99-03:  Mathematics Review for Finance (July 23, 2008)
bullet Teaching Note 99-04:  Probability and Statistics Review for Finance:  Part I (July 18, 2008)
bullet Teaching Note 00-06:  Probability and Statistics Review for Finance:  Part II (July 18, 2008)
bullet Teaching Note 00-07:  The Reflection Principle in Finance (July 23, 2008)
bullet Teaching Note 07-01:  The Bernoulli Paradox (July 23, 2008)
bullet Teaching Note 09-01:  Basic Concepts in Valuing Risky Assets and Derivatives (December 10, 2009)
bullet Option Pricing
bullet Teaching Note 96-02:  Risk Neutral Pricing in Discrete Time (July 24, 2008)
bullet Teaching Note 96-04:  Modeling Asset Prices as Stochastic Processes I (July 18, 2008)
bullet Teaching Note 96-05:  Ito's Lemma and Stochastic Integration (July 18, 2008)
bullet Teaching Note 97-13:  Option Prices and State Prices (July 18, 2008)
bullet Teaching Note 98-01:  Closed-Form American Call Option Pricing: Roll-Geske-Whaley (July 24, 2008)
bullet Teaching Note 98-02:  Analytic Approximation of American Option Prices: Barone-Adesi-Whaley (July 18, 2008)
bullet Teaching Note 98-03:  Closed-Form American Put Option Pricing: Geske-Johnson (July 18, 2008)
bullet Teaching Note 98-04:  Exchange Option Pricing (July 24, 2008)
bullet Teaching Note 98-05:  Compound Option Pricing (July 18, 2008)
bullet Teaching Note 98-06:  Rainbow (Min-Max) Option Pricing (July 18, 2008)
bullet Teaching Note 99-02:  Derivation and Interpretation of the Black-Scholes Model (July 18, 2008)
bullet Teaching Note 99-05:  Rational Rules and Boundary Conditions for Option Pricing (July 25, 2008)
bullet Teaching Note 00-01:  Linear Homogeneity, Euler's Rule, The Black-Scholes Model, and an Application to Forward-Start Options (July 25, 2008)
bullet Teaching Note 00-03:  Modeling Asset Prices as Stochastic Processes II (July 8, 2008)
bullet Teaching Note 00-04:  Girsanov's Theorem in Derivative Pricing (July 18, 2008)
bullet Teaching Note 00-05:  Brownian Motion:  From Discrete to Continuous Time (July 18, 2008)
bullet Teaching Note 00-08:  Convergence of the Binomial to the Black-Scholes Model (July 8, 2008)
bullet Teaching Note 03-01:  Option Prices and Expected Returns (August 7, 2008)
bullet Teaching Note 04-01:  The Volatility Smile (August 7, 2008)
bullet The Term Structure and Interest Rates
bullet Teaching Note 97-03:  The Vasicek Term Structure Model (August 7, 2008)
bullet Teaching Note 97-04:  The Cox-Ingersoll-Ross Term Structure Model (August 7, 2008)
bullet Teaching Note 97-14:  Binomial Pricing of Interest Rate Derivatives (August 15, 2008)
bullet Teaching Note 00-02:  The Local Expectations Hypothesis (August 15, 2008)
bullet Teaching Note 01-01:  Zero Coupon Bond Prices and Interest Rate Quotation Conventions (August 15, 2008)
bullet Teaching Note 01-02:  Introduction to Interest Rate Options (August 15, 2008).
bullet Teaching Note 02-01:  The Heath-Jarrow-Morton Term Structure Model (August 19, 2008)
bullet Teaching Note 05-01:  The Pricing and Interest Sensitivity of Floating-Rate Securities (August 19, 2008)
bullet Forwards, Futures, and Swaps
bullet Teaching Note 97-06:  Pricing and Valuation of Interest Rate and Currency Swaps (December 2, 2009)
bullet Teaching Note 97-08:  Pricing and Valuation of Commodity Swaps (August 19, 2008)
bullet Teaching Note 97-15:  Pricing and Valuation of Equity Swaps (August 20, 2008)
bullet Teaching Note 05-03:  A Generalization of the Cost of Carry Forward/Futures Pricing Model (August 20, 2008)
bullet Numerical and Computational Methods
bullet Teaching Note 96-03:  Monte Carlo Simulation (July 18, 2008)
bullet Teaching Note 97-02:  Option Pricing Using Finite Difference Methods (August 21, 2008)
bullet Teaching Note 97-12:  Calculating the Black-Scholes Value (August 21, 2008)
bullet Teaching Note 99-01:  Solving Linear Equations in Excel (August 21, 2008)
bullet Teaching Note 05-02.  Calculating the Greeks in the Binomial Model (August 21, 2008)
bullet Trading and Risk Management
bullet Teaching Note 97-07:  Value-at-Risk (VaR) (August 22, 2008)
bullet Teaching Note 97-10:  An Overview of Option Trading Strategies: Part I (August 22, 2008)
bullet Teaching Note 97-11:  An Overview of Option Trading Strategies: Part II (August 22, 2008)
bullet Credit Risk
bullet Teaching Note 96-01:  Default Risk as an Option (July 18, 2008)
bullet Teaching Note 97-09:  Credit Derivatives (August 22, 2008)
bullet Teaching Note 09-02:  Understanding the Cash Flows in Collateralized Debt Obligations (December 17, 2009)

MBA Teaching Notes

These items were written for my MBA introductory course in finance.  They are designed to supplement and elaborate on certain material that is not covered adequately in the text.  I may add some more from time to time.  These notes are distinguished from the ones above by the fact that these are relatively non-technical in comparison to those above.

bullet MBATN07-01:  The Change in Net Working Capital in a Capital Investment Project (November 16, 2008)
bullet MBATN07-02:  Some Problems with the Profitability Index (December 18, 2007)
bullet MBATN07-03:  Derivations of Present Value Formulas (December 18, 2007)
bullet MBATN07-04:  Some Problems in Capital Budgeting Terminology (December 18, 2007)
bullet MBATN07-05:  Geometric and Arithmetic Rates of Return (December 18, 2007)
bullet MBATN07-06:  The Capital Asset Pricing Model, Stock Pricing, and Expected and Required Returns (December 18, 2007)
bullet MBATN07-07:  Margin Trading and Short Selling (November 16, 2008)
bullet MBATN08-01:  Calculating Your Wealth (January 27, 2008).  Accompanying spreadsheet
bullet MBATN08-02:  Net Present Value Analysis of the Purchase of a Hybrid Automobile (December 2, 2008)
bullet MBATN08-03:  Net Present Value Analysis of Social Security (August 1, 2008).  Accompanying spreadsheet

 

Other Useful Information

bullet The 10 Most Common Writing Mistakes (in my humble opinion)
bullet Advice for Graduating Seniors and Graduate Students
bullet My Teaching Philosophy

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Last updated:  January 21, 2010