Courses & Units

Derivative Securities BEA380

Hobart

Introduction

In this face-to-face and flexible delivery unit, we develop an understanding of one of the fastest growing types of financial markets - those of derivative securities. They are called derivative securities because they ‘derive’ their value from the value of something else—an underlying right or interest. Underlying rights or interests (or assets in general) include (a) bonds or loans, which involve interest rate, credit, and currency risks, and (b) commodities and equities, which involve price risks. Underlying rights can also be groups of assets, such as equity or commodity indexes, or relationships between prices, such as the spread between two benchmarks. Derivatives securities play an important role in risk management.

Summary

Unit name Derivative Securities
Unit code BEA380
Credit points 12.5
College/School College of Business & Economics
Tasmanian School of Business and Economics
Discipline Economics and Finance
Coordinator Doctor Nagaratnam Jeyasreedharan
Available as student elective? Yes
Level Advanced

Availability

Location Study period Attendance options Available to
Hobart Semester 2 On-Campus Off-Campus International International Domestic Domestic

Key

On-campus
Off-Campus
International students
Domestic students
Note

Please check that your computer meets the minimum System Requirements if you are attending via Distance/Off-Campus.

Units are offered in attending mode unless otherwise indicated (that is attendance is required at the campus identified). A unit identified as offered by distance, that is there is no requirement for attendance, is identified with a nominal enrolment campus. A unit offered to both attending students and by distance from the same campus is identified as having both modes of study.

Key Dates

Study Period Start date Census date WW date End date
Semester 2 11/7/2022 9/8/2022 29/8/2022 16/10/2022

* The Final WW Date is the final date from which you can withdraw from the unit without academic penalty, however you will still incur a financial liability (see withdrawal dates explained for more information).

Unit census dates currently displaying for 2022 are indicative and subject to change. Finalised census dates for 2022 will be available from the 1st October 2021.

About Census Dates

Learning Outcomes

  • Knowledge of options, forwards, futures and swaps and their markets.
  • Comprehend the mechanics of how options, forwards, futures and swaps work and apply to the real world situations
  • Pricing options, forwards, futures and swaps
Field of Education Commencing Student Contribution 1 Grandfathered Student Contribution 1 Approved Pathway Course Student Contribution 2 Domestic Full Fee
081105 $1,828.00 $1,432.00 not applicable

1 Please refer here more information on student contribution amounts.
2 Information on eligibility and Approved Pathway courses can be found here
If you have any questions in relation to the fees, please contact UConnect or more information is available on StudyAssist.

Please note: international students should refer to this page to get an indicative course cost.

Requisites

Prerequisites

BEA112

Teaching

AssessmentTest or quiz (10%)|Test or quiz (10%)|Report (20%)|Examination - invigilated (internally) (60%)
TimetableView the lecture timetable | View the full unit timetable

Textbooks

Required

You will need the following text [available from the Co-op Bookshop]:

An Introduction to Derivative Securities, Financial Markets, and Risk Management (2nd Edition) by (author): Robert Jarrow (Cornell University, USA) and Arkadev Chatterjea (Indiana University, USA). Pages: 772 | July 2019. ISBN: 9781944659653 (paperback).

Recommended

: Baz, J. & Chacko, G.K. (2009), Financial Derivatives: Pricing, Applications, and Mathematics (Paperback), Cambridge University Press.

Cox, J. & Rubinstein, M. (1985), Options Markets, Prentice-Hall, New Jersey.

Dubofsky, D.A. (1992), Options and Financial Futures: Valuation and Uses, McGraw-Hill, New York.

Hull, J.C. et all (2013). Fundamentals of Futures and Options Markets: Australasian edition, Pearson Australia.

Kolb, R.W. (1997), Futures, Options and Swaps, Blackwell Business Publishers, 2nd edn, Malden.

McDonald, R. L. (2009), Fundamentals of Derivatives Markets. Prentice Hall, Boston.

Strong, R.A. & Jeyasreedharan, N. (2017). Understanding Derivatives: Options, Futures, Swaps, MBSs, CDOs and Others (First Edition), Tilde Publishing and Distribution, Prahan.

LinksBooktopia textbook finder

The University reserves the right to amend or remove courses and unit availabilities, as appropriate.