Course overview
This course introduces students to the derivative markets, examining how hedgers, speculators, and arbitrageurs use financial futures, forwards, and options. Applications developed at The University of Adelaide are employed to complement the study of derivative securities and their relationships to various underlying factors. The course then considers the pricing of derivatives and the use of binomial trees to demonstrate no-arbitrage and risk-neutral valuation arguments, as well as the Black-Scholes-Merton approach. There is an emphasis on the use of options and futures strategies for hedging and risk management to achieve interesting payoff patterns.
Course learning outcomes
- Price forward and futures contracts using the Cost-of-Carry model
- Determine appropriate hedging and risk management strategies using a mix of underlying and derivative securities
- Price options using the Binomial and Black Scholes pricing models
- Develop appropriate option strategies to hedge or arbitrage from mispriced derivative securities
Fee calculator
To display course fees, please select your status and program below:
We’re updating this Fee Calculator. It currently shows fees for programs only. Please check the relevant program for full fee details.
Study Abroad student tuition fees are available here.
Only some Postgraduate Coursework programs are available as Commonwealth Supported. Please check your program for specific fee information.
If you are studying in a Professional Pathway Psychology or Clinical Psychology program, please refer to the Student Contributions amounts published here.
The Student Contribution amount displayed below is for students commencing a new program from 2021 onwards. If you are continuing in a program you commenced prior to 1 January 2021, or are commencing an Honours degree relating to an undergraduate degree you commenced prior to 1 January 2021, you may be charged a different Student Contribution amount from the amount displayed below. Please check the Student Contribution bands for continuing students here. If you are an international student, or a domestic student studying in a full fee paying place, and are continuing study that you commenced in 2025 or earlier, your fees will be available here before enrolments open for 2026.