Information on this page, including unit offerings, is from the 2020 academic year.
Derivative Securities (BUS333)
|Availability||MURDOCH: S2-internal, S2-external
|Teaching Timetables||Murdoch S2
|Description||This unit is designed to provide students with a detailed understanding of the features and uses of the major derivative instruments, and an understanding of how the major derivative instruments are priced and valued. It provides an in-depth understanding of how the Binomial and Black-Scholes option pricing models are derived, and applied to options on currencies and futures. It covers how 'The Greeks' are determined and used to manage a hedged portfolio.|
|Unit Learning Outcomes||On successful completion of the unit students should be able to:
ULO 1: Demonstrate knowledge of the features and uses of major derivative instruments
ULO 2: Use alternative procedures to value major derivative instruments.
ULO 3: Demonstrate an advanced understanding of how hedged positions are established and maintained.
ULO 4: Evaluate the likelihood of default on derivative positions and the role of reputation capital in enforcing ethical outcomes.
ULO 5: Integrate the concepts of pricing financial instruments with jurisdictional differences in the operation of financial markets.
|Timetabled Learning Activities||Workshops: 2 hours per teaching week
All offerings of this unit include the equivalent of 30 hours of structured learning.
|Unit Learning Experiences||The unit is delivered using blended learning design features with core unit materials provided in a digital format followed up by small class knowledge application and skills development. This is enhanced by self-directed learning to further develop skills and application of knowledge to practical and current issues.
|Assessment||Tutorial participation 10%
Perdisco e-workbook 20%
Mid-term test 25%
|Prerequisites||BUS244/ BUS288 Treasury Management|
|Exclusions||Students who have successfully completed BUS325 Derivative Securities may not enrol in this unit for credit.|
|Appears in these Courses/Majors:
see individual structures for context
|Internet Access Requirements||Murdoch 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.|