Ses 10: Forward and Futures Contracts II & Options I

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  • Опубліковано 9 тра 2013
  • MIT 15.401 Finance Theory I, Fall 2008
    View the complete course: ocw.mit.edu/15-401F08
    Instructor: Andrew Lo
    License: Creative Commons BY-NC-SA
    More information at ocw.mit.edu/terms
    More courses at ocw.mit.edu

КОМЕНТАРІ • 85

  • @MrBish435
    @MrBish435 3 роки тому +24

    Prof Lo is an Amazing lecturer! Thank you so much, MIT for making these recordings available!

  • @qwertytechnology
    @qwertytechnology 7 місяців тому +2

    I am halfway through this course, and I can't help but be enthralled by Prof Lo's oratory. Thank you MIT OCW for offering this gem for free.

  • @sudhirpatil3434
    @sudhirpatil3434 4 роки тому +37

    I haven't come across a better teacher in all my life-
    hats off to his capability to make complicated stuff simple-

  • @Katana_00
    @Katana_00 4 роки тому +39

    1:02:50 start of Options talk

  • @DY-uy3rx
    @DY-uy3rx 3 роки тому +44

    From 2020: yes, those future contracts can even go negative.....

    • @RaylinRecords
      @RaylinRecords 3 роки тому +1

      true

    • @jitheshdsouza98
      @jitheshdsouza98 3 роки тому +1

      How?

    • @DY-uy3rx
      @DY-uy3rx 3 роки тому +9

      @@jitheshdsouza98 WTI future oil contract once turned negative in May 2020. Simply put, too many speculators bought the contracts and can't get rid of it, so they have to sell last minute at all cost.

    • @hl3641
      @hl3641 2 роки тому

      Lol…

    • @hl3641
      @hl3641 2 роки тому

      50:16 it’s easy to sell 25% if u own SP500 index etf is trading selling 500 individuals stocks by weights or using Future with friction , so why didn’t he promote the etf solution? Active manager bias

  • @Chillnote
    @Chillnote 9 років тому +31

    Better than the course in my college

    • @arrowb3408
      @arrowb3408 3 роки тому +1

      I should do the home work from this lecture before jumping in the Market. Hahaha... Should Have... damn

  • @berkandemir5407
    @berkandemir5407 9 років тому +56

    Legendary lecturer

    • @NazriB
      @NazriB 2 роки тому

      Lies again? Fujitsu laptop

    • @b09a321
      @b09a321 2 роки тому

      @@NazriB is

  • @NoName-vw7wf
    @NoName-vw7wf 5 років тому +8

    Just watching now. I remember getting my fisrt margin call back in the day.

  • @brainstormingsharing1309
    @brainstormingsharing1309 3 роки тому +5

    Absolutely well done and definitely keep it up!!! 👍👍👍👍👍

  • @solo.99
    @solo.99 Рік тому +2

    Very well explained and a great teacher!

  • @wiambenhammou9942
    @wiambenhammou9942 5 років тому +4

    Amazing professor!

  • @bganbesfien
    @bganbesfien 7 років тому +3

    I will be very intrested to understand what financial projects Andrew Lo is working on for the world, or to a lesser extend in America coming through 2016/17. HAppy New Year Professor! - Comments@Taiwan

  • @mauroguedes9603
    @mauroguedes9603 7 років тому +2

    Excellent.

  • @user-lh7dh1ew1c
    @user-lh7dh1ew1c 9 місяців тому

    brilliant lecture, by a brilliant lecturer

  • @TheYi1985
    @TheYi1985 4 роки тому +1

    Excellent!

  • @arrowb3408
    @arrowb3408 3 роки тому

    So true for what A.L said about commodity of gold, it's the simple for retirees to manage- just SIT AND THE RISING RATE. ..........STF..................

  • @enisten
    @enisten 3 роки тому +3

    12:30 This is not exactly true, though, right? Futures contract only eliminates the risk arising from the difference between the original futures price and the spot price at settlement. The buyer still has to pay the spot price during delivery, and the seller still has to have the goods to deliver.

    • @frederickhofmann843
      @frederickhofmann843 Рік тому

      I think it is true, because futures contracts are so standardized, not even really between two people anymore, most people who trade them do not really care about selling or using wheat

  • @TheShironiji
    @TheShironiji 7 років тому

    The sample MIDTERM exam and solution are not corresponding to each other (it seem that sample midterm exam is from 15.407 whereas solution is from 15.401). Could you please reupload it again.

  • @blueshadow1996
    @blueshadow1996 11 років тому +1

    This is interesting,,

  • @Doctor_NO
    @Doctor_NO 2 роки тому

    Could any smart guys answer my question? Dr.Lo talked about the futures on presidential election in Iowa. However, most forward and futures are based on ASSETS. I could not see any relevance between presidential election and asset. "Futures on presidential election" looks more like a gamble on football games to me.

  • @bruceb85
    @bruceb85 6 років тому

    40,000lb of cattle are about 40 cows at 1000 lbs per cow. They refer to them as heads (because they cut there heads off) so 40 heads is 40,000lb, or 1 contract.

  • @constantinacotsopoulou711
    @constantinacotsopoulou711 8 років тому +1

    I am thinking of a contract where I am payed back in materials like clothes ,hoes,sampoos ,food supllements,food ,shoes,gazoline ,bike insurance,bike repairs ,body care ,hair care ,facial care and some euros 24 every year all these for the amount of investment of 960 euros .in the lectures it sais that many companies are closing down and there fore they can pay their denbts in goods ,there they could find all these ,i am particularly interested in quality its ok if the brands are USA not European ,what do you think?

    • @bruceb85
      @bruceb85 6 років тому

      Constantina Cotsopoulou what are you saying

  • @srijankiller
    @srijankiller 4 роки тому

    Nice

  • @gabrysoprano8907
    @gabrysoprano8907 Рік тому

    Options are at 60:03

  • @jpan4438
    @jpan4438 3 роки тому +1

    If nobody chooses physical delivery, where are the cattle then? How do the farmers benefit?

    • @weebgrinder
      @weebgrinder 3 роки тому

      Not sure tbh but maybe they benefit as futures prices influence current or spot prices.

    • @jpan4438
      @jpan4438 3 роки тому +1

      @@weebgrinder Maybe at expiration the sellers "cancel" the order and sell the animals to the actual market? Not sure if the estimated price would be precise then.

    • @weebgrinder
      @weebgrinder 3 роки тому

      @@jpan4438 Me neither. There must be books about futures that answer questions like this. I would hope.

    • @PhiNguyen-iz9go
      @PhiNguyen-iz9go 2 роки тому +1

      I think there are people who really buy these cattle (physical), like restaurants, they will put money at settle day and the farmers get benefit from it. Other who just want to make a bet, they will cancel the contract (by selling an exact same contract) in some day before the settle day.

    • @jpan4438
      @jpan4438 2 роки тому

      @@PhiNguyen-iz9go But what if the betting stimulates the cattle supply, so that in the end there are too few restaurants that are willing to accept the beef?

  • @azswaggastupid
    @azswaggastupid 5 років тому

    Where is the $250 coming from?

  • @lalodominguez7121
    @lalodominguez7121 Рік тому

    I'm convinced he's saying "fucktuation" and that's final!

  • @ricardomurillo5205
    @ricardomurillo5205 10 років тому +2

    This is great. If he only used the board a bit more to see the math better....

  • @TheJiminiflix
    @TheJiminiflix Рік тому

    This is Kevin from the Office 😁

  • @vasudilwal9356
    @vasudilwal9356 2 роки тому

    dude at 1:04 walked out or in?

  • @Page216
    @Page216 8 місяців тому

    34:47

  • @ShivamGupta-zh5fe
    @ShivamGupta-zh5fe 4 роки тому

    If my margin is 5%, and the price of index falls by 10% in a day, and I don't have money to add to the margin account, can Future Clearing Corporation (or any other institution) recover the rest 5% from my personal assets?

    • @suppandi1000
      @suppandi1000 2 роки тому

      Yes

    • @RedCandleWax24
      @RedCandleWax24 2 роки тому +1

      Don’t keep your assets in your name. Use a legal entity to shelter.

  • @arrowb3408
    @arrowb3408 4 роки тому

    Hahaha... this is the biblical protocol I learned other than my other professional field. Very useful for both apply in my life. Hahaha... Love this.........STF......

  • @user-rm9pt4ti4y
    @user-rm9pt4ti4y Рік тому

    "THE JOKER IS BEING RESURRECTED NOW STEP BY STEP AS SENKU I SAY IT."GENIUS"(14)

  • @mrhandyhandssr7839
    @mrhandyhandssr7839 2 роки тому

    Amazing lecture. One might say……. Kinky

  • @irvinarce5852
    @irvinarce5852 9 років тому +3

    as a student this is quality, as a trader this is only 50% excellent. the same problem all introductory material about options have: nobody talks about selling options they only talk about buying options.

    • @kautilykrishanpandey9283
      @kautilykrishanpandey9283 9 років тому

      Can you please provide some videos which deals with options..

    • @mattm1634
      @mattm1634 8 років тому +1

      +irvin arce This is a first year course.

    • @robin212212
      @robin212212 4 роки тому

      @Manuj Madan i think you may mean market making in options, which involves both selling and buying of options and making profits from the bid ask spread.

  • @neelmoradiya1389
    @neelmoradiya1389 Рік тому

    🇮🇳🇮🇳🙏🙏👍👍

  • @johnstfleur3987
    @johnstfleur3987 Рік тому

    "TELOS."(ONE)

  • @RaylinRecords
    @RaylinRecords 3 роки тому +2

    35:44 power of stocks. Gold can pay dividends : ) American Barrick : )

  • @johnstfleur3987
    @johnstfleur3987 Рік тому

    " ABSOLUTELY INTELLIGENTLY MOST HUMBLY SPEAKING OF COURSE I AM PROFESSOR JESUS CHRIST OF THE RESSURECTION OF COURSE FROM HEAVEN."(ALIEN CORONA KING 19 OF COURSE)(V-BUDDHA AS IKE'S RESURRECTION OF COURSE)(JC)

  • @whatsup7184
    @whatsup7184 3 роки тому +1

    Hahaha... Happened to see a grandeur house in GA in the same name as Low. Hahaha..
    .
    Anyway, coming here to finish this section of the class-- the main purpose instead of that
    famous American. Hahaha..

  • @gyuyu6243
    @gyuyu6243 14 днів тому

    ua-cam.com/video/IwA7nVEwqto/v-deo.html

  • @arrowb3408
    @arrowb3408 4 роки тому +1

    OMG... this future contract is no different from any gambling table in casino at all to bet on anything you name it including the Pesident election. It's not hard to imagine myself as the Tom Sawyer in his class to bet anything as long as the cash amid it..:)......STF.......

  • @angelbaby.7897
    @angelbaby.7897 Рік тому

    Lol kinky XD