Aims and Fit of Module

This module will provide an in-depth analysis on the mechanics, pricing and application of the main categories of derivative securities and hybrid securities. The coverage will include derivatives written on various asset classes, including stocks, bonds, currencies and commodities. The module aims to provide students with analytical as well as conceptual understanding on the pricing and usage of derivative securities.

This is one of the core modules of the MSc Finance programme.

Learning outcomes

A. Analyse, assess and implement pricing models to value derivative securities.

B. Demonstrate deep and critical understanding of arbitrage violations in derivative markets.

C. Measure, analyse and manage risks in financial markets using derivatives.

Method of teaching and learning

Weekly 3-hour workshop comprising a mixture of lectures and practice classes for a total of 39 contact hours over 13 weeks.