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2021/22 Undergraduate Module Catalogue

LUBS3160 Financial Derivatives

10 creditsClass Size: 60

Module manager: Prof. Phil Holmes
Email: P.R.Holmes@lubs.leeds.ac.uk

Taught: Semester 2 (Jan to Jun) View Timetable

Year running 2021/22

Pre-requisite qualifications

LUBS2205 Corporate Finance
OR
LUBS2206 Corporate Financial Management

This module is mutually exclusive with

LUBS2035Finance for Small Business
MATH2525Financial Mathematics 3
MATH2540Financial Mathematics 3

This module is not approved as a discovery module

Objectives

This module aims to provide students with an understanding of the underlying features and functions of futures and options, developing an appreciation and a practical understanding of the key features of major derivative instruments and the principles of derivative pricing.

Learning outcomes
Upon completion of this module students will be able to interpret and assess:
- key features of a range of derivative instruments
- ways in which financial derivatives can be used for managing risk and for trading

Skills outcomes
Upon completion of this module students will be able to:
Transferable
- Extract relevant information from structured scenarios and data in order to identify problems and define solutions
- Structure and communicate quantitative and qualitative information, ideas, analysis, argument and commentary
- Communicate in writing
- Think critically

Subject specific
- Apply derivative pricing models and identify payoffs from derivative positions
- Apply core knowledge of financial derivatives to a range of scenarios
- Competently apply their numerical and statistical skills to interrogate financial and other numerical data


Syllabus

Indicative content:
- An introduction to the types of derivatives, derivative markets, purpose of derivatives
- Futures and Forwards
- Mechanics of futures markets
- Determination of futures and forward prices
- Options and Option valuation
- Options Strategies
- The binomial model and the Black-Scholes model of option pricing

Teaching methods

Due to COVID-19, teaching and assessment activities are being kept under review - see module enrolment pages for information

Delivery typeNumberLength hoursStudent hours
Lecture111.5016.50
Seminar51.005.00
Private study hours78.50
Total Contact hours21.50
Total hours (100hr per 10 credits)100.00

Private study

This could include a variety of activities, such as reading, watching videos, question practice and exam preparation.

Opportunities for Formative Feedback

Your teaching methods could include a variety of delivery models, such as face-to-face teaching, live webinars, discussion boards and other interactive activities. There will be opportunities for formative feedback throughout the module.

Methods of assessment

Due to COVID-19, teaching and assessment activities are being kept under review - see module enrolment pages for information


Exams
Exam typeExam duration% of formal assessment
Standard exam (closed essays, MCQs etc)2 hr 00 mins100.00
Total percentage (Assessment Exams)100.00

The resit for this module will be 100% by 2 hour examination.

Reading list

The reading list is available from the Library website

Last updated: 30/06/2021 15:20:00

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