FIN4014H Derivative Securities

Academic Year 2021/2022

This module provides an introduction to derivative securities. Alternative derivative securities are outlined. This incorporates detailing the properties of these securities. Furthermore, a key aim is to outline how these assets are valued. Also, the module demonstrates the use of derivatives in arbitrage, hedging and speculation. Risk, different types of risk, different risk measures, and associated methods of obtaining and validating the risk measures are outlined. Finally, practical applications of derivatives and potential pitfalls are discussed. Throughout the module, we will document theoretical and empirical findings from the literature to develop the research skills and knowledge of students.

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Curricular information is subject to change

Learning Outcomes:

On completion of this module, students should be able to:
Describe the different types of derivatives; their uses and the operations of their respective markets.
Explain the use of derivatives in risk management, speculation and arbitrage.
Detail the use of hedging and evaluation of hedging.
Describe risk measurement, the alternative measures and methods of obtaining measures.
Describe alternate pricing mechanisms for derivatives.
Develop research skills including data analysis and reviewing of salient literature.

Student Effort Type Hours


Specified Learning Activities


Autonomous Student Learning




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: Examination 2 hour End of Trimester Exam No Graded No


Assignment: Main Assignment Varies over the Trimester n/a Graded No


Carry forward of passed components
Resit In Terminal Exam
Spring Yes - 2 Hour
Feedback Strategy/Strategies

• Group/class feedback, post-assessment

How will my Feedback be Delivered?

General feedback is provided to students on all their submitted assessment components.

Name Role
Mr Neil Caraher Tutor
Ms Sarah Kelly Tutor
Ms Eva Lock Tutor

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