2007/08 Taught Postgraduate Module Catalogue
LUBS5050M Financial Derivatives
15 creditsClass Size: 200
Module manager: Professor Phil Holmes
Taught: Semester 2 (Jan to Jun) View Timetable
Year running 2007/08
Pre-requisites
| LUBS5004M | Corporate Finance |
| LUBS5126M | Financial Economics |
This module is not approved as an Elective
Objectives
On completion of this module, students should be able to understand the underlying principles which govern the behaviour of futures, options and swaps. They should be able to use and interpret the results of pricing models for various financial derivatives. Finally, they should be able to apply the study of financial derivatives to practical issues in risk management.Syllabus
Introduction to Financial Derivatives
Future Markets and the Use of Futures for Hedging
Forwards and Future Prices
Interest Rates, Duration and Swaps
Options Markets and Trading Strategies Involving Options
Asset Price Dynamics and Option Pricing
Application of Option Pricing Theory to Corporate Finance
Teaching methods
| Delivery type | Number | Length hours | Student hours |
| Lecture | 10 | 2.00 | 20.00 |
| Seminar | 10 | 1.00 | 10.00 |
| Private study hours | 120.00 | ||
| Total Contact hours | 30.00 | ||
| Total hours (100hr per 10 credits) | 150.00 | ||
Private study
120 hours - 12 x 10 reading and preparation for seminarsOpportunities for Formative Feedback
Progress will be monitored by contributions made to classes; formative feedback will be given on individual and group contributions to classes, and answering a series of practice questions.Methods of assessment
Exams
| Exam type | Exam duration | % of formal assessment |
| Standard exam (closed essays, MCQs etc) | 3 hr | 100.00 |
| Total percentage (Assessment Exams) | 100.00 | |
Normally resits will be assessed by the same methodology as the first attempt, unless otherwise stated
Reading list
The reading list is available from the Library websiteLast updated: 14/06/2010
Browse Other Catalogues
- Undergraduate module catalogue
- Taught Postgraduate module catalogue
- Undergraduate programme catalogue
- Taught Postgraduate programme catalogue
Errors, omissions, failed links etc should be notified to the Catalogue Team.PROD