Derivatives (11234.1)

Please note these are the 2019 details for this unit
Home
/
Find your course
/
Derivatives
Available teaching periods Delivery mode Location
View teaching periods
EFTSL Credit points Faculty
0.125 3 Faculty Of Business, Government & Law
Discipline Study level HECS Bands
School Of Information Systems & Accounting Level 3 - Undergraduate Advanced Unit Band 4 2021 (Commenced After 1 Jan 2021)
Band 4 2021 (Commenced After 1 Jan Social Work_Exclude 0905)
Band 5 2021 (Commenced Before 1 Jan 2021)
This unit is designed to develop students' understanding of various derivative instruments including futures and options contracts and their use in managing risk. This unit provides an overview of options, futures, forwards and swaps on a range of underlying assets/commodities including stocks, interest rates, foreign exchange as well as more exotic instruments such commodity derivatives. The models used for pricing these instruments and techniques used for risk management are also included.

Learning outcomes

After successful completion of this unit, students will be able to:
1. Analyse and explain how derivatives, such as options, futures, forwards, and swaps, are structured and operate;
2. Use various models to price forward contracts, futures, swaps and options contracts;
3. Develop and apply option trading strategies; and
4. Select and apply appropriate derivatives for various types of risk management.


Graduate attributes

1. UC graduates are professional - employ up-to-date and relevant knowledge and skills
1. UC graduates are professional - communicate effectively
1. UC graduates are professional - use creativity, critical thinking, analysis and research skills to solve theoretical and real-world problems
1. UC graduates are professional - work collaboratively as part of a team, negotiate, and resolve conflict
1. UC graduates are professional - display initiative and drive, and use their organisation skills to plan and manage their workload
2. UC graduates are global citizens - communicate effectively in diverse cultural and social settings
3. UC graduates are lifelong learners - adapt to complexity, ambiguity and change by being flexible and keen to engage with new ideas
3. UC graduates are lifelong learners - evaluate and adopt new technology
2. UC graduates are global citizens - think globally about issues in their profession


Prerequisites

11215 Business Finance.

Corequisites

None.

Incompatible units

None.

Equivalent units

None.

Assumed knowledge

School/college level mathematics and/or statistics, accounting or economics knowledge.
Year Location Teaching period Teaching start date Delivery mode Unit convener
Not available

Required texts

Textbook: Fundamentals of Futures and Options Markets, Global Edition, 8/E, 2016 by  John C. Hull; ISBN-10: 1292155035 • ISBN-13: 9781292155036

Here are the links to where students can purchase either the text book or eBook direct from the publisher

Hull, Fundamentals of Futures and Options Markets, Global Edition (2016)

Publisher's website where the students can purchase direct from the publisher:

Text book - https://www.pearson.com.au/9781292155036

eBook - https://www.pearson.com.au/9781292155043

From time to time you may find it useful to consult newspapers and journals such as;

- The Australian

- Australian Financial Review

- Business Review Weekly

- Global Finance Journal

Each of these is available in UC library or online in electronic format.

Submission of assessment items

Extensions & Late submissions

I certify that:

  1. the attached assignment is my own work and no part of this work has been written for me by any other person except where such collaboration has been authorised by the lecturer/s concerned;
  1. material drawn from other sources has been fully acknowledged as to author/creator, source and other bibliographic details according to unit-specific requirements for referencing; and no part of this work has been submitted for assessment in any other unit in this or another Faculty except where authorised by the lecturer/s concerned.

Subject policy on re-submissions, late penalties, absences etc.:

Re-submission is not permitted for any item of assessment. 

Special assessment requirements

In order to pass this unit, students have to obtain at least 50% of the available unit marks and appear in the final exam.

Academic integrity

Students have a responsibility to uphold University standards on ethical scholarship. Good scholarship involves building on the work of others and use of others' work must be acknowledged with proper attribution made. Cheating, plagiarism, and falsification of data are dishonest practices that contravene academic values. Refer to the University's Student Charter for more information.

To enhance understanding of academic integrity, all students are expected to complete the Academic Integrity Module (AIM) at least once during their course of study. You can access this module within UCLearn (Canvas) through the 'Academic Integrity and Avoiding Plagiarism' link in the Study Help site.

Use of Text-Matching Software

The University of Canberra uses text-matching software to help students and staff reduce plagiarism and improve understanding of academic integrity. The software matches submitted text in student assignments against material from various sources: the internet, published books and journals, and previously submitted student texts.

Participation requirements

See 5b above

Required IT skills

None

Work placement, internships or practicums

None