FIN42020 Derivative Securities

Academic Year 2022/2023

This course 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 course 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 course 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
Lectures

24

Tutorial

8

Total

32

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: The final exam will be an online exam consisting of 50% MCQ and 50% written answer questions, covering material drawn from the course and the provided problem sets. 2 hour End of Trimester Exam No Alternative linear conversion grade scale 40% No

50

Assignment: The assignment will test your understanding of the learning outcomes of the course using Option Metrics data from a unique date to trade or hedge on. Coursework (End of Trimester) n/a Alternative linear conversion grade scale 40% No

50


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

• Feedback individually to students, post-assessment
• Online automated feedback

How will my Feedback be Delivered?

Not yet recorded.

Name Role
Ms Min Cao Tutor
Autumn
     
Lecture Offering 1 Week(s) - Autumn: Weeks 7-12 Thurs 08:30 - 10:20
Lecture Offering 1 Week(s) - 8, 9, 10, 11, 12, 13 Tues 11:00 - 12:50
Lecture Offering 2 Week(s) - Autumn: Weeks 7-12 Thurs 11:00 - 12:50
Lecture Offering 2 Week(s) - 8, 9, 10, 11, 12, 13 Tues 08:30 - 10:20
Tutorial Offering 1 Week(s) - 8, 9, 10, 11, 12 Fri 09:00 - 09:50
Tutorial Offering 1 Week(s) - 8, 9, 10, 11, 12 Tues 13:30 - 14:20
Tutorial Offering 2 Week(s) - 8, 9, 10, 11, 12 Fri 10:00 - 10:50
Tutorial Offering 2 Week(s) - 8, 9, 10, 11, 12 Tues 14:30 - 15:20
Tutorial Offering 3 Week(s) - 8, 9, 10, 11, 12 Fri 11:30 - 12:20
Tutorial Offering 3 Week(s) - 8, 9, 10, 11, 12 Tues 16:00 - 16:50
Tutorial Offering 4 Week(s) - 8, 9, 10, 11, 12 Fri 12:30 - 13:20
Tutorial Offering 4 Week(s) - 8, 9, 10, 11, 12 Tues 17:00 - 17:50
Autumn
     

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