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FIN42240

Academic Year 2024/2025

Applied Derivative Securities (FIN42240)

Subject:
Finance
College:
Business
School:
Business
Level:
4 (Masters)
Credits:
5
Module Coordinator:
Dr Adrian Fernandez-Perez
Trimester:
Autumn
Mode of Delivery:
On Campus
Internship Module:
No
How will I be graded?
Letter grades

Curricular information is subject to change.

This course covers the core fundamentals of derivative securities and the important role that they play in financial markets. This is not a highly intensive quantitative course and as such our focus will not be on any quantitative theories underlying derivative securities, we will only touch on some of their core underlying principles where necessary for an appropriate understanding the pricing of different derivative products. Our primary focus will be to provide a very good understanding of the practical applications of derivatives in financial markets using real world examples.

About this Module

Learning Outcomes:

Understanding what derivative markets are.

Understanding the main derivative securities and how they are priced.

Understanding how to apply derivative securities for hedge and trading.

Indicative Module Content:

1. Introduction: Preparing for Derivatives (Lectures 1 and 2)
2. Forwards and Futures (Lecture 3)
3. Applied Derivatives 1 - Hedging (Lectures 4)
4. Swaps (Lecture 5)
5. Options (Lecture 6)
6. Applied Derivatives 2 - Trading (Lecture 7)
7. Applied Derivatives 3 - Energy & Commodities (Lectures 8)
8. Applied Derivatives 4 - Derivatives Mishaps (Lectures 9)
9. Project Workshop (Lecture 10)
10. Revision & Exam Preparation (Lecture 11)
11. Presentations (Lecture 12)

Student Effort Hours:
Student Effort Type Hours
Autonomous Student Learning

101
Lectures

24
Total

125

Approaches to Teaching and Learning:
We will have very interactive classes where participation in discussions and questions is highly encouraged. We will focus on the practical real-world applications of the concepts we introduce.

Requirements, Exclusions and Recommendations

Not applicable to this module.


Module Requisites and Incompatibles
Not applicable to this module.
 

Assessment Strategy
Description Timing Component Scale Must Pass Component % of Final Grade In Module Component Repeat Offered
Exam (In-person): Final examination End of trimester
Duration:
2 hr(s)
 Standard conversion grade scale 40% No
50
 No
Group Work Assignment: The Continuous Assessment will be group-based project work. I will randomly allocate the groups and post them to Brightspace.
Assigment (35%)
Presentation (15%)		 Week 12 Standard conversion grade scale 40% No
50
 No

Carry forward of passed components
Yes
 

Resit In Terminal Exam
Spring Yes - 2 Hour
Please see Student Jargon Buster for more information about remediation types and timing. 

Feedback Strategy/Strategies

• Feedback individually to students, post-assessment
• Group/class feedback, post-assessment

How will my Feedback be Delivered?

Not yet recorded.

The primary textbook is John Hull’s “Options Futures and Other Derivatives”, Global Edition. We will also use some chapters from John Hull's "Risk Management and Financial Institutions" (fifth edition). I will upload other Articles to Brightspace as necessary and these will be referenced in updated versions of this Course Outline also.

Timetabling information is displayed only for guidance purposes, relates to the current Academic Year only and is subject to change.
Autumn Lecture Offering 1 Week(s) - 7 Fri 09:00 - 10:50
Autumn Lecture Offering 1 Week(s) - 7 Fri 11:30 - 13:20
Autumn Lecture Offering 1 Week(s) - 10 Thurs 11:00 - 12:50
Autumn Lecture Offering 1 Week(s) - 8, 9, 11, 12 Thurs 11:00 - 12:50
Autumn Lecture Offering 1 Week(s) - 8, 9, 10, 11, 12 Thurs 13:30 - 15:20
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