Derivatives
PostgraduateTAS-BEA6022022
Course information for 2022 intake View information for 2025 course intake
Enrolments for this course are closed, but you may have other options to start studying now. Book a consultation to learn more.
- Study method
- 100% online
- Assessments
- Subject may require attendance
- Entry requirements
- Part of a degree
- Duration
- 14 weeks
- Loan available
- FEE-HELP available
Derivatives
About this subject
Upon completion of this subject, the student should be able to:
- 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.
- 1. Week 1 - Derivatives and Risk Management
- 2. Week 2 - Forwards, Futures and Options
- 3. Week 3 - Options Markets and Trading Strategies
- 4. Week 4 - Options Relations and Single-Period Binomial Model
- 5. Week 5 - Multi-period Binomial Model
- 6. Week 6 - Black-Scholes Model
- 7. Week 7 - Using The Black-Scholes Model
- 8. Week 8 - Mid-Semester Test (Online Test)
- 9. Week 9 - Futures Trading and Regulations
- 10. Week 10 - The Cost and The Extended Cost of Carry Model
- 11. Week 11 - Yields, Forwards Rates and Interest Rate Swaps
- 12. Week 12 - Financial Engineering, Swaps and Risk Management Models
- 13. Week 13 - UNIT OVERVIEW AND FINAL EXAM FORMAT
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 subject 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.
- E-Quizzes (10%)
- Minor Assignments*2 (20%)
- Mid-Semester Test (10%)
- Final Exam (60%)
For textbook details check your university's handbook, website or learning management system (LMS).
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Entry requirements
Part of a degree
To enrol in this subject you must be accepted into one of the following degrees:
Core
- TAS-FIN-GDI-2022 - Graduate Diploma in Finance
- TAS-FSP-MAS-2022 - Master of Finance (Specialisation)
- TAS-FIN-MAS-2022 - Master of Finance
Prior study
You must either have successfully completed the following subject(s) before starting this subject, or currently be enrolled in the following subject(s) in a prior study period; or enrol in the following subject(s) to study prior to this subject:
Please note that your enrolment in this subject is conditional on successful completion of these prerequisite subject(s). If you study the prerequisite subject(s) in the study period immediately prior to studying this subject, your result for the prerequisite subject(s) will not be finalised prior to the close of enrolment. In this situation, should you not complete your prerequisite subject(s) successfully you should not continue with your enrolment in this subject. If you are currently enrolled in the prerequisite subject(s) and believe you may not complete these all successfully, it is your responsibility to reschedule your study of this subject to give you time to re-attempt the prerequisite subject(s).
Additional requirements
No additional requirements
Study load
- 0.125 EFTSL
- This is in the range of 10 to 12 hours of study each week.
Equivalent full time study load (EFTSL) is one way to calculate your study load. One (1.0) EFTSL is equivalent to a full-time study load for one year.
Find out more information on Commonwealth Loans to understand what this means to your eligibility for financial support.
Related degrees
Once you’ve completed this subject it can be credited towards one of the following courses
PostgraduateTAS-FIN-GDI
Master of Finance (Specialisation)
PostgraduateTAS-FSP-MAS
PostgraduateTAS-FIN-MAS