| Unit name | Derivatives |
|---|---|
| Unit code | ECONM3017 |
| Credit points | 15 |
| Level of study | M/7 |
| Teaching block(s) |
Teaching Block 2 (weeks 13 - 24) |
| Unit director | Professor. Nick Taylor |
| Open unit status | Not open |
| Units you must take before you take this one (pre-requisite units) |
None |
| Units you must take alongside this one (co-requisite units) |
None |
| Units you may not take alongside this one |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
The aim of this unit is to provide an introduction to the pricing of the major derivative securities (that is, forwards/futures, swaps and options), and a training in the use of derivatives in managing risk. The unit is technical in nature.
On completion of this unit students should be able to (inter alia):
1. Understand how financial derivatives are valued based on no-arbitrage pricing and risk-neutral valuation, and how these instruments can be used to implement risk management strategies.
2. Critically discuss the practical usefulness of the Black-Scholes-Merton option pricing model.
3. Appreciate the latest developments in derivative modelling, and understand the latest problems in pricing complex derivatives.
Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities
Summative:
This unit will be assessed by 100% exam (3 hours). This assessment will cover ILO 1, ILO 2, and ILO 3.
Any re-assessment required will be a like for like assessment.
Formative:
Feedback on tutorial answers and peer-marked class tests.
If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.
If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. ECONM3017).
How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours
of study to complete. Your total learning time is made up of contact time, directed learning tasks,
independent learning and assessment activity.
See the University Workload statement relating to this unit for more information.
Assessment
The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit.
The Board considers each student's outcomes across all the units which contribute to each year's programme of study. For appropriate assessments, if you have self-certificated your absence, you will normally be required to complete it the next time it runs (for assessments at the end of TB1 and TB2 this is usually in the next re-assessment period).
The Board of Examiners will take into account any exceptional circumstances and operates
within the Regulations and Code of Practice for Taught Programmes.
