FIN3008S Derivative Securities

Academic Year 2023/2024



This module introduces the fundamentals of Derivative Securities. Topics covered include derivative markets, uses of derivatives and the pricing of derivatives. Asset classes covered will include equities, foreign exchange and commodities.

The aim of this module is to introduce derivatives as a tool for managing risk. The key products are futures, options and swaps. This module describes in detail how the international derivatives markets work, how they can be used by treaury and risk management depatments, and what determines prices in them. Among the topics covered in this module are: futures and options markets, interest rate futures, types of options, dynamic hedging and portfolio insurance, introduction to options strategies, interest rate and foreign currency swaps, pricing options and credit derivatives.

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Curricular information is subject to change

Learning Outcomes:


At the end of this module, you should be able to:
• Define and explain the uses of the different types of derivatives, how they are priced, where they are traded and how they can be used to hedge risk..
• Explain the relationships between spot rates, forward rates, swap rates and other interest rates.
• Understand the pricing of derivatives using no-arbitrage theory and risk-neutrality.
• Use the put/call parity result to create and analyse option strategies,
• Discuss credit risk and the uses of credit derivatives.

Student Effort Hours: 
Student Effort Type Hours
Lectures

20
Specified Learning Activities

108
Autonomous Student Learning

112
Total

240
Approaches to Teaching and Learning:
Cases, discussion, workshop on workings, guest speakers, lectures, etc. 
Requirements, Exclusions and Recommendations

Not applicable to this module.


Module Requisites and Incompatibles
Not applicable to this module.
 
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade
Examination: Exam Coursework (End of Trimester) No Graded No

60
Assignment: Assignment Unspecified n/a Graded No

40

Carry forward of passed components
No
 
Remediation Type Remediation Timing
Repeat Within Two Trimesters
Please see Student Jargon Buster for more information about remediation types and timing. 
Feedback Strategy/Strategies

• Group/class feedback, post-assessment

How will my Feedback be Delivered?

N/a

Name Role
Professor John Cotter Lecturer / Co-Lecturer
Dr Vassilios Papavassiliou Lecturer / Co-Lecturer
Dr Christina Burke Tutor
Ms Michele Connolly Doran Tutor
Soh Cheong Hian Tutor
Shirley Ho Tutor
June Neo Tutor
Rachel Sim Tutor
Chee Shong Tan Tutor
Ms Diana Tan Tutor
Charlene Tan Puay Koon Tutor
Timetabling information is displayed only for guidance purposes, relates to the current Academic Year only and is subject to change.
 

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