How to Implement Bloomberg in Teaching Derivatives

How to Implement Bloomberg in Teaching Derivatives at an Undergraduate Class Amira Annabi, Bloomberg for Education — New York Symposium

June 22, 2018

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Presentation Outline My Bloomberg Experience at HEC Montreal (2000-2002)

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Presentation Outline My Bloomberg Experience at HEC Montreal (2000-2002) My Bloomberg Experience at Manhattan College (2012-Present)

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Presentation Outline My Bloomberg Experience at HEC Montreal (2000-2002) My Bloomberg Experience at Manhattan College (2012-Present) Integrating Bloomberg into Teaching Derivatives:A Four-Stage Journey

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Presentation Outline My Bloomberg Experience at HEC Montreal (2000-2002) My Bloomberg Experience at Manhattan College (2012-Present) Integrating Bloomberg into Teaching Derivatives:A Four-Stage Journey Stage 1: Improve the students’ Excel skills

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Presentation Outline My Bloomberg Experience at HEC Montreal (2000-2002) My Bloomberg Experience at Manhattan College (2012-Present) Integrating Bloomberg into Teaching Derivatives:A Four-Stage Journey Stage 1: Improve the students’ Excel skills Stage 2: Align the priorities with the learning goals

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Presentation Outline My Bloomberg Experience at HEC Montreal (2000-2002) My Bloomberg Experience at Manhattan College (2012-Present) Integrating Bloomberg into Teaching Derivatives:A Four-Stage Journey Stage 1: Improve the students’ Excel skills Stage 2: Align the priorities with the learning goals Stage 3: Creating customized handouts

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Presentation Outline My Bloomberg Experience at HEC Montreal (2000-2002) My Bloomberg Experience at Manhattan College (2012-Present) Integrating Bloomberg into Teaching Derivatives:A Four-Stage Journey Stage Stage Stage Stage

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Improve the students’ Excel skills Align the priorities with the learning goals Creating customized handouts Assess the students on an individual basis

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Assessment of students satisfaction with Bloomberg

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Assessment of students satisfaction with Bloomberg What’s next?

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My Bloomberg Experience HEC Montreal (2000-2002)

Fall 2000: My first encounter with Bloomberg Software was in graduate school when I was pursuing a Master in Financial Engineering at HEC Montreal .

Finance Lab @ HEC Montreal

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My Bloomberg Experience HEC Montreal (2000-2002)

Fall 2000: My first encounter with Bloomberg Software was in graduate school when I was pursuing a Master in Financial Engineering at HEC Montreal .

Finance Lab @ HEC Montreal

Vivid memory of feeling overwhelmed and frustrated. Annabi

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My Bloomberg Experience Manhattan College (2012-Present)

Fall 2012: I started to teach an undergraduate course on financial derivatives. Around the same time, the school acquired 12 Bloomberg Terminals, following the recommendations of the board of advisors and the school alumni.

Finance Lab @ Manhattan College

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My Bloomberg Experience Manhattan College (2012-Present)

Fall 2012: I started to teach an undergraduate course on financial derivatives. Around the same time, the school acquired 12 Bloomberg Terminals, following the recommendations of the board of advisors and the school alumni.

Finance Lab @ Manhattan College

The Dean’s mantra was:“Use it or Lose it” Annabi

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Integrating Bloomberg into Teaching Derivatives: A Four-Stage Journey

Stage 1: Improve the students’ Excel skills

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Stage 1: Improve the students’ Excel skills Stage 2: Align the priorities with the learning goals

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Stage 1: Improve the students’ Excel skills Stage 2: Align the priorities with the learning goals Stage 3: Create customized handouts

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Stage 1: Improve the students’ Excel skills Stage 2: Align the priorities with the learning goals Stage 3: Create customized handouts Stage 4: Assess the students on an individual basis

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Stage 1 : Improve the students’ Excel skills Why is it important? To be able to analyze the data provided by Bloomberg, as well as to replicate derivatives prices

Example Replicate the option price provided by Bloomberg Instructions: 1. Select one option (a European call or a put) from the trading strategy you developed in class. 2. In Excel, price this option using the Black-Scholes formula. Please clearly identify the variables used in the formula, as well as their values. 3. Compare the price you obtained in (2) to the price displayed by Bloomberg (for the same set of inputs). What do you notice?

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Stage 2: Align the priorities with the learning goals

Step 1 Build a course syllabus, and define learning objectives.

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Step 1 Build a course syllabus, and define learning objectives. Step 2 Explore Bloomberg functions, and choose 2-3 functions that would serve the learning goal.

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Step 1 Build a course syllabus, and define learning objectives. Step 2 Explore Bloomberg functions, and choose 2-3 functions that would serve the learning goal. Step 3 Loop back and make sure that your step 2 goal is achieved. For instance, I add a specific question to the end of the semester evaluation asking if function helped them understand better how to price stock options.

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Stage 3: Create customized handouts

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Stage 3: Create customized handouts A Continuous Process

[ Spring 2015]Created how-to-guides for Bloomberg Software, and posted them on Moodle. [Spring 2016]Improved existing how-to guides based on students feedbacks . Developed new pages for additional functionalities. [Spring 2017]Compiled these guides and created the Bloomberg User Manual: The Practical Reference for Using.. [Spring 2018]Improved existing manual based on students’ feedback.

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Stage 4: Assess the students on an individual basis

Make sure each student has a chance to practice the various Bloomberg functions

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Stage 4: Assess the students on an individual basis

Make sure each student has a chance to practice the various Bloomberg functions Help and mentor the students: Bloomberg assistant, extended office hours in the lab ...

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Stage 4: Assess the students on an individual basis An example

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Assessment of students satisfaction with Bloomberg Survey Description

At the end of the semester, I conducted a student survey to assess the students’ satisfaction with the integration of Bloomberg in teaching material.

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At the end of the semester, I conducted a student survey to assess the students’ satisfaction with the integration of Bloomberg in teaching material. Initial population: 93 students enrolled in the “Options and Futures Markets”, Spring 2018, Manhattan College.

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At the end of the semester, I conducted a student survey to assess the students’ satisfaction with the integration of Bloomberg in teaching material. Initial population: 93 students enrolled in the “Options and Futures Markets”, Spring 2018, Manhattan College. Response rate: 68.82%.

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At the end of the semester, I conducted a student survey to assess the students’ satisfaction with the integration of Bloomberg in teaching material. Initial population: 93 students enrolled in the “Options and Futures Markets”, Spring 2018, Manhattan College. Response rate: 68.82%. Demographics:

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At the end of the semester, I conducted a student survey to assess the students’ satisfaction with the integration of Bloomberg in teaching material. Initial population: 93 students enrolled in the “Options and Futures Markets”, Spring 2018, Manhattan College. Response rate: 68.82%. Demographics: Gender: 78.1% male

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At the end of the semester, I conducted a student survey to assess the students’ satisfaction with the integration of Bloomberg in teaching material. Initial population: 93 students enrolled in the “Options and Futures Markets”, Spring 2018, Manhattan College. Response rate: 68.82%. Demographics: Gender: 78.1% male Classification status: 51.6% junior vs 48.4% senior

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At the end of the semester, I conducted a student survey to assess the students’ satisfaction with the integration of Bloomberg in teaching material. Initial population: 93 students enrolled in the “Options and Futures Markets”, Spring 2018, Manhattan College. Response rate: 68.82%. Demographics: Gender: 78.1% male Classification status: 51.6% junior vs 48.4% senior First generation status: 23.4% first generation students and 35.9% with only one parents that graduated from college Annabi

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Assessment of students satisfaction with Bloomberg Preliminary Results

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What’s Next?

Run survey on larger samples, and identify the population that is struggling with learning Bloomberg.

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What’s Next?

Run survey on larger samples, and identify the population that is struggling with learning Bloomberg. Develop a methodology to better target this identified population.

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What’s Next?

Run survey on larger samples, and identify the population that is struggling with learning Bloomberg. Develop a methodology to better target this identified population. Train students that could offer Bloomberg workshops to freshmen and sophomores.

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