Undergraduate CUR-BAN35-2019

Introduction to Derivative Securities

Take your first foray into derivative securities. These are usually a form of agreement to buy or sell an asset at a fixed price on or before a certain date. You’ll cover areas such as financial forwards and futures, swaps and model risk.

Duration

13 weeks

Student rating

N/A

Study method

100% online

Available loans

FEE-HELP
HECS-HELP

Assessments

Subjects may require attendance

Prior study

Required

Study terms

02 Mar 2020
31 Aug 2020

Start your career with Curtin’s globally recognised courses and extensive industry connections. Through OUA, our online courses offer an interactive and collaborative learning experience that gets you the same degree as if you studied on campus. Curtin is a global university with a vibrant culture of innovation and collaboration and is ranked in the top one per cent of universities worldwide.

University ranking

2019
2020

Subject details

What you'll learn

At the completion of this subject students will be able to:

construct derivatives theory from abstract theoretical concepts
adapt derivatives theory to market practice
evaluate the financial economic implications of financial engineering methods.

Topics covered

- Derivatives Market Overview
- Interest Rates
- Pricing of Forward and Futures Contracts
- Hedging Strategies using Futures and Interest Rate Futures
- Swaps
- Portfolio of Stock Options and Option trading Strategies
- Binomial
- Black-Scholes Model
- Options on Stock Indices
- Currencies and Futures

Entry requirements

You must have successfully completed the following subject(s) before starting this subject:

CUR-BAN23-Introduction to Finance Principles , or CUR-BAN25-Business Analysis for Investment
and
CUR-BAN24-Introduction to Financial Instruments and Markets

Special requirements

No special requirements

Description

This subject covers the theoretical foundations of derivative securities, financial forwards and futures, forward rate agreements (FRAs) and swaps, model-independent option valuation, geometric Brownian motion, Black-Scholes-Merton model, binomial model, option Greeks, and model risk.

Please Note: If it’s your first time studying a Curtin University subject you’ll need to complete their compulsory ‘Academic Integrity Program’. It only takes two hours to complete online, and provides you with vital information about studying with Curtin University. The Academic Integrity Program is compulsory, so if it’s not completed your subject grades will be withheld.

Find out more about the Academic Integrity module.

Assessments

Assignment 1 (25%)
Mid Semester Test (25%)
Final Invigilated Examination (50%)

Textbooks

Current study term (01 Mar 20 to 31 May 20)

Textbook information is pending.

Next study term (30 Aug 20 to 29 Nov 20)

Textbook information is pending.

Related degrees

undergraduate CUR-FIN-DEG-2019

Bachelor of Commerce Finance