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Unit (2019)

Information on this page, including unit offerings, is from the 2019 academic year.

Derivative Securities (BUS325)

Organisational Unit Business
Credit Points 4
Description This unit is designed to provide students with a detailed understanding of the features and uses of the major derivative instruments, an understanding of how the major derivative instruments are valued and an introduction to the features of exotic derivative instruments. Alternatives to the Black-Scholes models, credit risk derivatives and advanced models in interest rate derivatives will also be examined.
Unit Learning Outcomes Upon successful completion of this unit students will be able to:
LO1: Critically evaluate the features and uses of the major derivative instruments;
LO2: Value major derivative instruments
LO3: Demonstrate an advanced understanding of how hedged positions are established and maintained;
LO4: Compare the features of exotic derivative instruments with traditional derivatives.
LO5: Communicate clear and coherent expositions of knowledge, ideas and evidence, both orally and in writing.

Timetabled Learning Activities Lectures: 2 hours per week; tutorials: 1 hour per week.
Unit Learning Experiences The unit is delivered in a lecture plus workshop/lab format This is enhanced by self-directed learning to further develop skills and application of knowledge to practical and current issues.
Assessment Tutorial 10%
Test 25%
Case Study 15%
2 hour Final Exam 50%
Prerequisites BUS244 Treasury Management or BUS288 Treasury Management
Internet Access RequirementsMurdoch units normally include an online component comprising materials, discussions, lecture recordings and assessment activities. All students, regardless of their location or mode of study, need to have access to and be able to use computing devices with browsing capability and a connection to the Internet via Broadband (Cable, ADSL or Mobile) or Wireless. The Internet connection should be readily available and allow large amounts of data to be streamed or downloaded (approximately 100MB per lecture recording). Students also need to be able to enter into online discussions and submit assignments online.


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