ECON 3003 Derivatives
Credit Points 10
Legacy Code 200079
Coordinator Neelam Goela Opens in new window
Description This subject provides an introduction to the major classes of derivatives: forwards, futures, swaps and options. It examines how these instruments can be used by companies for the purposes of hedging, speculation and arbitrage. Each of these categories of derivatives is examined in some detail. Considerable attention is also given to various models used to price derivative products. The historical background to contemporary risk management is also considered.
School Business
Discipline Economics
Student Contribution Band HECS Band 4 10cp
Check your HECS Band contribution amount via the Fees page.
Level Undergraduate Level 3 subject
Pre-requisite(s) ECON 1006 AND
ECON 2002
Equivalent Subjects LGYA 9824 - Risk Management LGYB 9004 - Options Futures and Derivitive Products
Assumed Knowledge
Knowledge of mathematics and statistics equivalent to that required for 200052, Introduction to Economic Methods.
Assessment
The following table summarises the standard assessment tasks for this subject. Please note this is a guide only. Assessment tasks are regularly updated, where there is a difference your Learning Guide takes precedence.
| Type | Length | Percent | Threshold | Individual/Group Task |
|---|---|---|---|---|
| Quiz | 40 minutes | 10 | N | Individual |
| Portfolio | 10 minutes | 15 | N | Individual |
| Intra-session Exam | 1 hour | 25 | N | Individual |
| Final Exam | 2 hours | 50 | N | Individual |
Prescribed Texts
- Hull, J 2014, Fundamentals of futures and options markets, 8th edn, Pearson, Harlow, Essex. [Available online].
Teaching Periods