Unit aim

This unit provides an introduction to financial derivatives. It deals with the investment decision making process, derivative markets and securities, pricing, risk management and trading strategies, as well as the application of derivatives in modern financial markets. Topics include: forwards and futures, options, warrants, swaps, exotics, derivative valuation models, and hedging and trading techniques.

Unit content

Topic 1 Introduction to derivative markets
Topic 2 The mechanics of forward and futures market
Topic 3 Principles of pricing forward and futures
Topic 4 Hedging strategies using forward and futures
Topic 5 Swaps
Topic 6 The mechanics of options markets
Topic 7 Option pricing models: Binomial and Black-Scholes-Merton
Topic 8 Trading strategies involving option
Topic 9 Financial risk management techniques and applications
Topic 10 Derivatives mishaps and lessons

Learning outcomes

Unit Learning Outcomes express learning achievement in terms of what a student should know, understand and be able to do on completion of a unit. These outcomes are aligned with the graduate attributes. The unit learning outcomes and graduate attributes are also the basis of evaluating prior learning.

Learning outcomes and graduate attributes

Prescribed texts

Session 2

  • Chance, DM & Brooks R, 2013, An Introduction to Derivatives and Risk Management, 9th edn, South-Western, Mason, OH, USA. ISBN: 13- 9781133190196.
Prescribed texts may change in future study periods.

Teaching and assessment

Gold Coast

Teaching method
Lecture online 1 hour (10 weeks)
Tutorial on-site 2 hours (10 weeks)
Assessment
Short written response20%
Short written response30%
Exam: closed book50%

Online

Teaching method
Lecture online 1 hour (10 weeks)
Assessment
Short written response20%
Short written response30%
Exam: closed book50%
Notice

Intensive offerings may or may not be scheduled in every session. Please refer to the timetable for further details.

Southern Cross University employs different teaching methods within units to provide students with the flexibility to choose the mode of learning that best suits them. SCU academics strive to use the latest approaches and, as a result, the learning modes and materials may change. The most current information regarding a unit will be provided to enrolled students at the beginning of the study session.

Fee information

Domestic

Commonwealth Supported courses
For information regarding Student Contribution Amounts please visit the Student Contribution Amounts.
Commencing 2014 Commonwealth Supported only. Student contribution band: 3

Fee paying courses
For POSTGRADUATE or UNDERGRADUATE full fee paying courses please check Domestic Postgraduate Fees OR Domestic Undergraduate Fees

International

Please check the international course and fee list to determine the relevant fees.

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