Courses & Units

Derivatives BEA602

Introduction

Derivatives or derivative securities are (as the name suggests) derived from other securities. Derivatives are used for a number of purposes, including insuring against price movements (hedging), increasing one’s exposure to price movements (speculation) or getting access to an otherwise hard-to-trade asset or market (market completion).
The unit is comprised of three main modules: Options, Futures and Swaps. Topics covered include currency and futures contracts, pricing derivative securities, behaviour of share prices, forward and futures contracts, currency and coupon swaps, interest rate derivative securities and other derivative securities, share options, options on stock indices, binomial and Black-Scholes option pricing, hedging positions in options, advanced trading strategies, and exotic options.

Summary

Unit name	Derivatives
Unit code	BEA602
Credit points	12.5
College/School	College of Business & Economics Tasmanian School of Business and Economics
Discipline	Finance
Coordinator	Doctor Richard Mawulawoe Ahadzie
Delivered By	University of Tasmania
Level	Postgraduate

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

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 (refer to How do I withdraw from a unit? 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. 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.
Analyse the mechanics of how options, forwards, futures and swaps work and apply to real world situations.
Calculate the prices and quantities of options, forwards, futures and swaps.

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
081101	$1,828.00	$1,432.00	not applicable	$2,702.00

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.

Requisites

Prerequisites

(BEA681 - Data and Business Decision Making OR BEA654 - Data and Business Decision Making OR BEA674 - Data and Business Decision Making)

Teaching

Teaching Pattern	Tuition Pattern Details Activity Type Duration Frequency Lectures 2 hours Weekly Face-to-Face Workshops (On-campus students) 3 hours 4 (Semester) Online Workshops (Distance students) 1 hour Weekly
Assessment	Online Test 1 (20%)\|Online test 2 (20%)\|Final Exam (40%)\|Group assignment (20%)
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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