FIN3355 Assignment and Group Project
2nd term 2024-25
Instructions on Assignments:
1. The homework/assignments come from chapter-end questions. To work on the assignment,
you can discuss with your groupmates, but you have to submit the assignments individually
and copy is strictly not allowed. The grade on the assignment is based on individual’s work.
2. There are two assignments: submit assignment 1 by the 12:00 noon on 28 Feb 2025 and
submit assignment 2 by the 12:00 noon on 4 April 2025.
3. The assignments account for 5% of your overall grade.
Instructions on Group Project:
4. The project is intended to help you practice what you learn by reading, understanding
economic and market issues, assembling market data, and pricing of products in the real
world.
5. The project should be done in a group of up to a maximum of 5 students. You are free to
form your own team as long as every team in your section consists of four to five team
members. Otherwise some team members might be re-assigned at the instructor’s discretion.
In the final report, you need to attach a sheet of workload distribution among team members
and signatures of the team members. All members of the group will receive the same grade on
the project.
6. In this project, you are required to perform pricing and analyses of ONE commodity
futures product (e.g. Gold, Crude Oil, Natural Gas etc.) and ONE stock option (American
style options). Check your model price with the traded prices and discuss why if there is any
difference. If you use market prices to calibrate certain parameters in your model so that the
model price equals to the market price, explain your calibration method. You are free to
choose the specific futures and option products in this project.
7. For data access, you can approach at your own initiative and resources. Please indicate
clearly the source of the data you used. For verification of your data results, please also
submit together with your printed report a screenshot of your data (e.g., the commodity
spot price, the futures price, the stock price, and the stock option price).
For commodity price and future price data, you can go to CME Group’s website at
[Link] or Bloomberg at
[Link]
For stock price and stock option prices, you can go to NASDAQ at
[Link]
8. You should turn in your written Project Report (including all relevant raw materials in the
Appendix section) by the deadline. The submitted report should be printed on A4-size
papers using Times Roman or Calibri 12-size font and single-spaced, wherever possible. The
first page of the report should list the project title and the full names of all students in the
group. All figures or graphs/charts must carry the caption. The total number of pages in the
report, including graphs, should be eight pages or less.
9. You must notify your lecturer of your team membership by the class on 06 February 2025.
10. All reports should be submitted to the Department of Finance (SEK203) by 12:00 noon on
Thursday, 24 April 2025.
11. This group project accounts for 10% of your overall grade.
