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 |
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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 | ||
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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 |
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Semester 2 | 10/7/2023 | 8/8/2023 | 28/8/2023 | 15/10/2023 |
* 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 2023 are indicative and subject to change. Finalised census dates for 2023 will be available from the 1st October 2022. Note census date cutoff is 11.59pm AEST (AEDT during October to March).
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 |
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081105 | $1,892.00 | $1,482.00 | not applicable | $2,837.00 |
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
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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). |
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Recommended |
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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