Last modified: 05 Aug 2021 13:04
In this course we will study basic derivatives contracts: forwards, futures, options and swaps, written on a variety of underlying instruments. We will also investigate interest rate and credit derivatives that will introduce you to a broader world of more complex derivatives products. This course will provide you with an introduction to essential areas in derivatives from both a theoretical and a practical perspective. The theoretical aspect will cover the pricing mechanism of forwards, options and swaps, the construction of Binomial tree model as well as the underpinnings of the Black-Scholes model. The practical aspect will focus on the derivatives trading, the organisation and structure of derivatives markets and hedging with derivatives as well as their role is risk management. The course will equip you with rigorous analytical skills in order to be able to conduct a broad quantitative analysis in the area of derivatives with the use of Excel spreadsheets.
| Study Type | Postgraduate | Level | 5 |
|---|---|---|---|
| Term | Second Term | Credit Points | 15 credits (7.5 ECTS credits) |
| Campus | Aberdeen | Sustained Study | No |
| Co-ordinators |
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In this course we will study basic derivatives contracts: forwards, futures, options and swaps, written on a variety of underlying instruments. We will also investigate interest rate and credit derivatives that will introduce you to a broader world of more complex derivatives products. This course will provide you with an introduction to essential areas in derivatives from both a theoretical and a practical perspective. The theoretical aspect will cover the pricing mechanism of forwards, options and swaps, the construction of Binomial tree model as well as the underpinnings of the Black-Scholes model. The practical aspect will focus on the derivatives trading, the organisation and structure of derivatives markets and hedging with derivatives as well as their role is risk management. The course will equip you with rigorous analytical skills in order to be able to conduct a broad quantitative analysis in the area of derivatives with the use of Excel spreadsheets.
| Assessment Type | Summative | Weighting | 70 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback | ||||
| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
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| Assessment Type | Summative | Weighting | 30 | |
|---|---|---|---|---|
| Assessment Weeks | Feedback Weeks | |||
| Feedback | Word Count | 2000 | ||
| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
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There are no assessments for this course.
| Knowledge Level | Thinking Skill | Outcome |
|---|---|---|
| Factual | Remember | ILO’s for this course are available in the course guide. |
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