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Unit of study_

FINC6010: Derivative Securities

This unit provides an introduction to derivative securities like options, futures and swaps. These securities are derived from fundamental securities such as equities and bonds. The unit examines the nature of each type of derivative security before a thorough treatment of the pricing and use of these securities for investment management and risk management purposes.

Code FINC6010
Academic unit Finance
Credit points 6
Prerequisites:
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FINC5001
Corequisites:
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None
Prohibitions:
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None

At the completion of this unit, you should be able to:

  • LO1. identify and distinguish between the various forms of derivatives instruments
  • LO2. apply futures strategies for long and short hedge
  • LO3. apply option strategies such as covered calls, spreads and combinations
  • LO4. price options, futures and swaps
  • LO5. utilise options and futures contracts for portfolio management purposes.

Unit outlines

Unit outlines will be available 1 week before the first day of teaching for the relevant session.