Week 1             Introduction

Week 2 and 3   Black-Scholes-PDE and Black-Scholes-Merton Options Pricing Model

Week 4             Portfolio Theory and The Capital Asset Pricing Model

Week 5             Consumption Base and Production Base Capital Asset Pricing Model

Week 6+7         Investment Base Capital Asset Pricing Model

Week 8               Mid-term

Week 9+10       Information Base Capital Asset Pricing Model

Week 11           Empirical Works Review (Pricing Factor)

Week 12           Behavior Finance and Related Empirics

Week 12+13     Options Implied Market and Stock Returns and Volatility 

Week 13           Student Presentation: Paper Review 

Week 14           Final exam

Mid-term 25%

Final exam 25%

Student Paper Review 30%

Participation 20% 

We will mainly go through papers. You can use the following reference textbook.

 Robert H. Litzenberger, and  Chi-fu Huang, Foundations for Financial Economics (Prentice Hall,)

Cochrane, Asset Pricing, Revised Edition, Princeton University Press

John Hull, Options, Futures, and Other Derivatives,