Courses & Units

Derivative Securities BEA380

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	Finance
Coordinator	Doctor Richard Mawulawoe Ahadzie
Available as an elective?	Yes
Delivered By	University of Tasmania
Level	Advanced

Availability

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

Key

: On-campus
: Off-Campus
: International students
: Domestic students

Note

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Key Dates

Study Period	Start date	Census date	WW date	End date
Semester 2	22/7/2024	16/8/2024	9/9/2024	27/10/2024

* 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 (refer to How do I withdraw from a unit? for more information).

Unit census dates currently displaying for 2024 are indicative and subject to change. Finalised census dates for 2024 will be available from the 1st October 2023. Note census date cutoff is 11.59pm AEST (AEDT during October to March).

About Census Dates

Learning Outcomes

Describe the concept of options, forwards, futures and swaps and their markets.
Critically analyse the mechanics of options, forwards, futures and swaps, and their applications in real-world scenarios.
Compute prices of options, forwards, futures, and swaps, and evaluate their implementation incorporating various factors such as risk management, market liquidity, and contract specifications.

Fee Information

Field of Education	Commencing Student Contribution ^1,3	Grandfathered Student Contribution ^1,3	Approved Pathway Course Student Contribution ^2,3	Domestic Full Fee ⁴
081105	$2,040.00	$1,597.00	not applicable	$2,979.00

¹ Please refer to more information on student contribution amounts.
² Please refer to more information on eligibility and Approved Pathway courses.
³ Please refer to more information on eligibility for HECS-HELP.
⁴ Please refer to more information on eligibility for FEE-HELP.

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 What is an indicative Fee? to get an indicative course cost.

Teaching

Teaching Pattern

Tuition Pattern Details

Activity Type	Duration	Frequency
Lectures	2 hours	Weekly
Face-to-Face Workshops (On-campus students)	2 hours	6 times (Semester)
Online Workshops (Distance Students)	2 hour	6 times (Semester)

Assessment

Assignment (20%)|Online Test 1 (20%)|Online test 2 (20%)|Final Exam (40%)

Timetable

View 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.
Links	Booktopia textbook finder

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.

Links

Booktopia textbook finder

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