Derivatives
PostgraduateTAS-BEA7102024
Previously TAS-BEA602
Course information for 2024 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
- 100% online
- 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:
- Determine the mechanics of derivative instruments and their markets.
- Design and communicate collaborative derivative strategies to specialist and non-specialist audiences.
- Critically analyse market data to price derivative instruments.
- Apply derivative solutions to satisfy the needs of key organisational stakeholders.
- Derivatives and Risk Management
- Forwards, Futures and Options
- Option Trading Strategies
- Option Relations
- Single/Multiperiod-Period Binomial Model
- The Black-Scholes-Merton Model
- Using the Black-Scholes Merton Model
- Arbitrage and Trading
- The Cost and The Extended Cost of Carry Model
- Yields and Forward Rates
- Swaps and Financial Engineering
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 contracts, 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.
After completing this subject, students will be familiar with derivatives valuation and their use in risk management. The acquired skills will be useful in the management of financial risks in the financial sectors.
- Online Quizzes x 2 (40%)
- Final Take-Home Examination (40%)
- Group Assignment (20%)
For textbook details check your university's handbook, website or learning management system (LMS).
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- 20
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- 19
Entry requirements
Part of a degree
To enrol in this subject you must be accepted into one of the following degrees:
Core
- TAS-FIN-MAS-2024 - Master of Finance
- TAS-FIN-GDI-2024 - Graduate Diploma of Finance
Equivalent subjects
You should not enrol in this subject if you have successfully completed any of the following subject(s) because they are considered academically equivalent:
TAS-BEA602 (Not currently available)
Additional requirements
- Other requirements - Teaching Arrangement: Pre-recorded lectures provided online, every week (12 weeks), up to 1.5 hours per lecture (3-5 short lectures of maximum 20 minutes each). Online students will join on-campus students via Zoom for 4 blocks of 3 hour workshops , 180 minutes per workshop. Any students located in Hobart who wish to attend in person may discuss this with the Unit Coordinator to see what options may exist.
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-MAS
PostgraduateTAS-FIN-GDI