Teaching Derivatives Using Bloomberg: An Experiential Learning Approach

Abstract

The purpose of this paper is to contribute to the existing literature on experiential learning in finance by discussing the instructional design of an undergraduate derivatives course. Moreover, we advocate for the use of Bloomberg Terminals as an experiential learning tool, providing students with real-life experiences. This paper proposes and describes two learning products designed to enhance the experiential learning benefits of this course: a customized instructional manual and a simulation for option trading strategies. To measure the effectiveness of this experiential teaching approach, we rely on pre- and post-class surveys, as well as a recent graduate survey. Our findings suggest that integrating Bloomberg in the classroom has both short term and long term implications: In the short run, it improves students learning outcomes. In the long run, the results of the survey suggest that learning how to use Bloomberg in the classroom provided a boost to recent graduates, both during their job search and during the first weeks after they start.