This module is not currently running in 2024 to 2025.
The module aims to introduce students to the workings of Financial Markets part of which are markets where financial derivatives are traded. Indicative content includes:
Introduction to Financial Markets; Term structure of interest rates, Fixed income securities, Bond markets and Bond valuation; Stock markets, Common stock, Valuation of Common Stock; Derivatives, Derivative markets, Option contracts, Option valuation; Hedging, Hedging and trading strategies with derivative contracts.
Total contact hours: 38
Private study hours:112
Total study hours: 150
Assessment 1 (10-15 hrs) 20%
Assessment 2 (10-15 hrs) 20%
Examination (2 hours) 60%
Reassessment methods
Like-for-like
Investments, (Global Edition or 10th and 9th Edition) by Bodie, Kane and Marcus. The publisher is McGraw-Hill Education.
John C. Hull, Options, Futures and other Derivatives, (8th Edition) Pearson, 2011
See the library reading list for this module (Canterbury)
The intended subject specific learning outcomes:
On successfully completing the module students will be able to:
1 demonstrate systematic understanding of key aspects of the derivative markets;
2 demonstrate the capability to deploy established approaches accurately to analyse and solve problems using a reasonable level of skill in calculation and manipulation of the material in the following areas: Futures markets, interest rate topics, interest rate derivatives and swap, trading strategies of future, forwards and options;
3 apply key aspects of the derivative markets in well-defined contexts, showing judgement in the selection and application of tools and techniques.
The intended generic learning outcomes:
On successfully completing the module students will be able to:
1 manage their own learning and make use of appropriate resources;
2 understand logical arguments, identifying the assumptions made and the conclusions drawn;
3 communicate straightforward arguments and conclusions reasonably accurately and clearly;
4 manage their time and use their organisational skills to plan and implement efficient and effective modes of working;
5 solve problems relating to qualitative and quantitative information;
6 make competent use of information technology skills such as online resources (Moodle), internet communication;
7 communicate technical material competently;
8 demonstrate an increased level of skill in numeracy and computation;
9 demonstrate the acquisition of the study skills needed for continuing professional development.
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