Don M. Chance
Instructional Web Page

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

Courses I teach:

I currently teach three courses.  One is a masters' level online, asynchronous course called Financial Risk Management.  Another is a doctoral seminar called Quantitative Finance and Derivative Pricing.  I also teach an undergraduate special topics course called Risk and the Psychology of Finance.  If you have any questions about teaching such courses and would like some advice, please shoot me an email.

Here is a general descripton of hte courses I teach.

FIN 3910:  Special Topics:  Risk and the Psychology of Finance

This course is essentially a  course in decision making under risk. Taught as a seminar for undergraduates, enrollment is limited to 20-22 students. The course is delivered online via Zoom in a synchronous manner, one day a week for two back -to-back 1-hour, 20-minute sessions. The course uses no textbooks, nor does it have any exams, but there are a substantial number of readings and more than 20 writing assignments. Most are small but one is a research project requiring a paper and presentation in which the student chooses someone who had to make a critical decision at some time in history. Hence, the student can select some famous historical figure and event and analyze it from a risk-return perspective. . A significant amount of class participation is required to secure a good grade in this course. The course focuses on building an understanding of the psychology of making decisions under risk. While financial decisions are clearly important decisions under risk, the course studies decisions that are common in life more generally, such as those involving health, sports, , gambling, and business to enable the student to understand the broader processes that make for good decision making. We frequently identify the human biases that lead to poor decision making and we look at the effect of luck in decision making. Each semester there are three outstanding guest speakers who will share their life experiences in making tough decisions. This cours is available for undergraduate students in any academic discipline.

FIN 7400:  Financial Risk Management

This course is offered online, asynchronously, which means no class meetings, with the material delivered entirely by video. The course is the study of how financial risk is identified and managed. Requirements include a mid-term and final exam, a risk management project, and participation in weekly online forums that deal with contemporary topics in risk management. The course uses a book that I wrote called Financial Risk Management:  An End User Perspective (Singapore:   World Scientific Press, 2019). As the title indicates, the course is from the end user’s point of view, meaning that if focuses on buyers of risk management products, who are ordinarily at a severe disadvantage relative to sellers. Such buyers would be corporations and non-profits. This buy-side perspective contrasts with the sell-side perspective, which refers to the financial institutions that offer these products. The aforementioned project involves taking the perspective of a risk management consulting firm in developing a real-world prospective buy-side client. This course is available for masters’ students in finance as well as full-time, part-time, professional, executive, and online MBA students. Qualified students can also come from STEM fields as well as economics and accounting.

FIN 7720:  The Process and Methodology of Research

 This course is a doctoral seminar on how to do research as well as how to be an academic in finance. We study how to develop research ideas and carry them through the process to publication. We will study how to write a paper and get feedback. The students are required to make presentations that simulate a short conference presentation of someone else’s paper, as well as be a conference discussant. The student will also make a longer (1 hour, 20 minute) full presentation, simulating what they would be doing on a job interview or in a faculty seminar. In addition, the students are required to collect some data and do some basic statistics from the Compustat, CRSP, and OptionMetrics data bases on the WRDS system. Other topics covered include science and the scientific method, the journal submission process with referee reports and how to respond to them, and the interpretation and use of scholarly metrics. The course is delivered online synchronously for two back-to-back 1-hour, 20-minute sessions via Zoom.

 FIN 7855:  Quantitative Finance and Derivative Pricing

This doctoral seminar focuses on gaining an advanced and yet fundamental understanding of stochastic models in derivative pricing. It uses my book Foundations of the Pricing of Financial Derivatives:  Theory and Analysis (New York:  John Wiley, 2024), co-authored with Robert Brooks. The course is delivered online synchronously via Zoom and meets one day a week for two 1-hour, 20-minute back-to-back sessions. Requirements include class participation, student presentations of some of the material, and a small research project using OptionMetrics data. We build the stochastic foundations of option pricing models, including not only the celebrated Black-Scholes-Merton model but also a model based on arithmetic Brownian motion. We cover European, American, and some exotic options, term structure models, and numerical methods, as well as forwards, futures, and swaps. The course is designed primarily for finance students but virtually any student from STEM fields is qualified to take this course. In the past students form chemistry, engineering, data science, and mathematics have taken this course.

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.  The naming convention yy-xx is based on the year that I first wrote the document and the order in which it was written that year.  Thus, TN99-03 was the third document written in 1999.

SPECIAL FOR THOSE WANTING TO LEARN DERIVATIVES:  These notes are in the order in which I wrote them and do not build on each other.  Go to this page for a suggested course of study that tells you which order you should read these notes if you are using them to learn derivatives in general.

(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 ( and I will fix it.)


REMOVAL OF SOME ITEMS:  Quite a few of these pdfs have been removed as they are now incorporated into Foundations of the Pricing of Financial Derivatives:  Theory and Analysis, which is described on my main web page.  Sorry, but I feel I have to protect my intellectual capital.  The links have been removed so no need to click.  If you are interested in the topic, it is covered in the book.

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.

*MBATN08-01 (Calculating Your Wealth) has been removed because I now use it as a presentation during our MBA orientation.  If you are interested in this case and spreadsheet, email me at  MBATN08-03 has also been removed.

Other Useful Information

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Last updated:  May 4, 2023