Overview

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Academic contacts

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Other learning activities

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Learning activities

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Learning outcomes

1.
Discuss the manner in which financial instruments are traded on financial markets;
2.
Explain the concept of arbitrage, and its implications for market efficiency;
3.
Apply arbitrage concepts to the valuation of financial instruments;
4.
Critically evaluate the features and uses of the major derivative instruments;
5.
Describe the role of hedged positions and how they can be set up and maintained; and
6.
Communicate clear and coherent expositions of knowledge, ideas and evidence, both orally and in writing.

Assessments

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Additional information

Unit content:Calculations of the price sensitivity of interest rate instruments; The role of futures and options in achieving speculative goals with respect to commodities, financial futures, stocks and indices; Hedging a position in commodities using futures; Establishing a hedge for a position in interest rate instruments using futures, forward rate agreements, options and swaps and other derivative instruments; Establishing arbitrage positions using combinations of financial instruments and derivatives