Hull, Chapter 5 is a 53 minute instructional video analyzing the following concepts:

* Differentiate between investment and consumption assets.

* Define short-selling and calculate the net profit of a short sale of a dividend-paying stock.

* Describe the differences between forward and futures contracts and explain the relationship between forward and spot prices.

* Calculate the forward price given the underlying asset’s spot price, and describe an arbitrage argument between spot and forward prices.

* Explain the relationship between forward and futures prices.

* Calculate a forward foreign exchange rate using the interest rate parity relationship.

* Define income, storage costs, and convenience yield.

* Calculate the futures price on commodities incorporating income/storage costs and/or convenience yields.

* Calculate, using the cost-of-carry model, forward prices where the underlying asset either does or does not have interim cash flows.

* Describe the various delivery options available in the Futures markets and how they can influence futures prices.

* Explain the relationship between current futures prices and expected future spot prices, including the impact of systematic and nonsystematic risk.

* Define and interpret contango and backwardation, and explain how they relate to the cost-of-carry model.