Courses & Units

Derivatives BEA602



May be taken as an elective in other postgraduate courses only with permission from the Master of Finance course coordinator.


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.


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
Available as student elective? No
Delivered By Delivered wholly by the provider
Level Postgraduate


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


International students
Domestic students

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Key Dates

Study Period Start date Census date WW date End date
Semester 2 12/7/2021 10/8/2021 30/8/2021 17/10/2021

* 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 2021 are indicative and subject to change. Finalised census dates for 2021 will be available from the 1st October 2020. Note census date cutoff is 11.59pm AEST (AEDT during October to March).

About Census Dates

Learning Outcomes

  • Understand the concept of options, forwards, futures and swaps and their markets.
  • Comprehend the mechanics of how options, forwards, futures and swaps work and apply to real world situations.
  • Price 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
081101 $1,812.00 $1,419.00 not applicable $2,702.00
  • Available as a Commonwealth Supported Place
  • HECS-HELP is available on this unit, depending on your eligibility3
  • FEE-HELP is available on this unit, depending on your eligibility4

1 Please refer here more information on student contribution amounts.
2 Information on eligibility and Approved Pathway courses can be found here
3 Please refer here for eligibility for HECS-HELP
4 Please refer here for 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 this page to get an indicative course cost.



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


AssessmentTest or quiz (10%)|Test or quiz (10%)|Examination - invigilated (externally - Exams Office) (60%)|Assignment (20%)
TimetableView the lecture timetable | View the full unit timetable



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).


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

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