Derivatives

Postgraduate | 2026

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area/catalogue icon
Area/Catalogue
BAFI 6016
Course ID icon
Course ID
202993
Level of study
Level of study
Postgraduate
Unit value icon
Unit value
6
Course level icon
Course level
2
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Inbound study abroad and exchange
Inbound study abroad and exchange
The fee you pay will depend on the number and type of courses you study.
Yes
University-wide elective icon
University-wide elective course
Yes
Single course enrollment
Single course enrolment
Yes
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Note:
Course data is interim and subject to change

Course overview

This course examines the function and operation of derivative markets in finance. It begins by identifying the relationships that must hold in these markets to prevent arbitrage opportunities. The course then covers options pricing using the Binomial and Black-Scholes models and describes a wide range of futures and options strategies, along with their applications to hedging and risk management. It also considers currency and fixed-interest derivatives, as well as options on futures and various exotic options.

Course learning outcomes

  • Employ core concepts of futures in pricing futures and forwards
  • Interpret and analyse market for a mix of underlying and derivative securities data for appropriate hedging and risk management strategies
  • Apply stock price dynamics and hedge parameters to price options
  • Design appropriate hedging and arbitrage strategies with derivative securities

Prerequisite(s)

N/A

Corequisite(s)

N/A

Antirequisite(s)

N/A