Derivatives (11234.2)

Please note these are the 2023 details for this unit
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Derivatives
Available teaching periods Delivery mode Location
View teaching periods On-campus
 Bruce, Canberra
EFTSL Credit points Faculty
0.125 3 Faculty Of Business, Government & Law
Discipline Study level HECS Bands
Canberra Business School 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.
Availability for enrolment in 2026 is subject to change and may not be confirmed until closer to the teaching start date.
Year Location Teaching period Teaching start date Delivery mode Unit convener
2025 Bruce, Canberra Semester 1 03 February 2025 On-campus Dr Abu Mollik
2026 Bruce, Canberra Semester 1 16 February 2026 On-campus Dr Abu Mollik
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, Pearson,Printed in Vivar, Malaysia

Here are the links to where students can purchase the text book or eBook directly

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

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

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

Special assessment requirements

Final grades in this subject will be assessed according to performance in each of the

assessment items identified above. In order to pass this unit, you must obtain:

  • an overall total score of at least 50% AND
  • submit all assessment items marked as mandatory

Students must apply academic integrity in their learning and research activities at UC. This includes submitting authentic and original work for assessments and properly acknowledging any sources used.

Academic integrity involves the ethical, honest and responsible use, creation and sharing of information. It is critical to the quality of higher education. Our academic integrity values are honesty, trust, fairness, respect, responsibility and courage.

UC students have to complete the Academic Integrity Module annually to learn about academic integrity and to understand the consequences of academic integrity breaches (or academic misconduct).

UC uses various strategies and systems, including detection software, to identify potential breaches of academic integrity. Suspected breaches may be investigated, and action can be taken when misconduct is found to have occurred.

Information is provided in the Academic Integrity Policy, Academic Integrity Procedure, and University of Canberra (Student Conduct) Rules 2023. For further advice, visit Study Skills.

Participation requirements

See 5b above

Required IT skills

None

Work placement, internships or practicums

None

Additional information

N/A