Hobart
This unit is being phased out and may not be offered next year, please consider your study plan accordingly. You will be able to enrol in the unit where there is an availability noted below.
May be taken as an elective in other postgraduate courses only with permission from the Master of Finance course coordinator.
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 2021
| Unit name | Derivatives |
|---|---|
| Unit code | BEA602 |
| Credit points | 12.5 |
| Faculty/School | College of Business & Economics Tasmanian School of Business and Economics |
| Discipline | Finance |
| Coordinator | |
| Level | Postgraduate |
| Available as student elective? | No |
| Breadth Unit? | No |
Availability
Note
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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.
Special approval is required for enrolment into TNE Program units.
TNE Program units special approval requirements.
* 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).
Learning Outcomes
| LO1 | Understand the concept of options, forwards, futures and swaps and their markets. |
| LO2 | Comprehend the mechanics of how options, forwards, futures and swaps work and apply to real world situations. |
| LO3 | Price options, forwards, futures and swaps. |
Fees
Requisites
Prerequisites
BEA674
Co-requisites
N/A
Mutual Exclusions
You cannot enrol in this unit as well as the following:
BEA681 or BEA654
Teaching
| Teaching Pattern | Please check the unit outline for details. |
|---|---|
| Assessment | E-Quizzes (10%), Mid-Semester Test (10%), 2 Minor Assignments (20%), Final Exam (60%). |
| Timetable | View the lecture timetable | View the full unit timetable |
Textbooks
| Required | Please check the unit outline for details. |
|---|
The University reserves the right to amend or remove courses and unit availabilities, as appropriate.