In addition to the required materials, students must also purchase the following:

FACTSim.org Commodity Trading Simulation: University of Florida Energy Commodity Simulation. Students will have to go to www.factsim.org to register. Cost is $50 (Access is active for six months from the time of purchase). Instructions for registration and use will be posted in ANGEL.

The aim of this course is to introduce fundamental concepts of financial management and illustrate their global applications. The course will cover the physical and financial aspects of the following energy commodities – crude, natural gas, natural gas liquids, Liquefied Natural Gas (LNG), gasoline and, power. The physical "path" of each commodity from the point of production to the point of use will be explained as well as, the "value chain" that exists for each. Commodity market pricing, both cash and financial, will be presented, encompassing industry "postings" for cash, commodity exchanges and, "over-the-counter" markets. The use of financial derivatives to reduce market price risk ("hedging") will be presented and "real world" examples will be utilized. The students will "trade" a mock energy contracts portfolio while learning about "mark-to-market" and risk controls. Other energy sources such as coal, nuclear and alternative energy will not be covered. The course will largely be comprised of online narrative, audio lectures, and required readings. Students will use standard pricing and hedging models to work "real world" problems from both a producer and, consumer perspective. Online forums will be available for discussion by the students with Instructor feedback and contribution. About half-way into the semester, there will be an 5-6-week trading activity involving crude and natural gas futures contracts. Students will make buy/sell decisions employing both fundamental and, technical, analysis. There will also be several case studies presented involving disastrous trading results where a lack of risk controls were present.