Professor of Finance, Smeal Chair Professor of Finance
Charles Cao is The Smeal Chair Professor of Finance at the Department of Finance, the Smeal College of Business at the Pennsylvania State University. He received his Ph.D. in Finance from the University of Chicago's Graduate School of Business in 1993, M.S. from the University of Kentucky in 1988, and B.S. from Peking University in 1984.
Professor Cao's research interests include derivative securities markets, market microstructure, credit risk, mutual funds and hedge funds. His research has been published in a wide range of academic journals, including Journal of Finance, Review of Financial Studies, Journal of Business, Journal of Financial and Quantitative Analysis, Journal of Financial Markets, Journal of Econometrics and Journal of Financial Intermediation. His paper ``Price Discovery without Trading: Evidence from Nasdaq Pre-opening'' (co-authored with Eric Ghysels and Frank Hatheway) received the New York Stock Exchange Award for Best Paper on Equity Trading at Western Finance Association Meetings in 1999.
Professor Cao won competitive research grants from Morgan Stanley (2004), Federal Deposit Insurance Corporation-FDIC (2006-2007), the BNP Paribas Hedge Fund Center at SMU (2009) and the Q-group (2010). He was also selected Fellow of FDIC Center for Financial Research in 2006. He serves as an editor of Pacific-Basin Finance Journal, an associate editor of Journal of Financial Markets, Review of Derivatives Research, Review of Quantitative Finance and Accounting, and Annals of Economics and Finance. He has taught M.B.A. and Ph.D. courses at the Smeal College of Business, Penn State University.
Ph D, Finance, University of Chicago, 1993
MS, Statistics, University of Kentucky, 1988
BS, Mathematics, Peking University, 1984
FIN 410 – Derivative Markets (3)
Functions, techniques, and impact of speculation conducted through forward markets; the nature of speculative transactions, pricing, and methods of trading.
FIN 597A – Asset Pricing Theory (3)
This course develops the theory of financial markets; topics include intertemporal portfolio choice, asset and option pricing models and determinants of cross-sectional stock returns.
FIN 601 – PH.D. DISSERTATION FULL-TIME (12)
FIN 596 – Individual Studies (9)
Creative projects, including nonthesis research, which are supervised on an individual basis and which fall outside the scope of formal courses.
FIN 585 – Financial Innovation and Portfolio Risk Management (2)
Introduction to fundamental derivatives, standard valuation models, and practical applications to portfolio management; recognition, measurement, and management of portfolio risk.