Module Catalogues, Xi'an Jiaotong-Liverpool University   
 
Module Code: ACF451
Module Title: Financial Derivatives
Module Level: Level 4
Module Credits: 2.50
Academic Year: 2019/20
Semester: SEM1
Originating Department: International Business School Suzhou
Pre-requisites: N/A
   
Aims
This subject contributes to the achievement of the MSc Investment Management programme learning outcomes by enabling students to solve asset management/corporate finance problems as they present themselves in real-life situations. This module will provide an in-depth understanding of the derivative assets such as options, futures, and forwards. The module aims to provide students with analytical as well as conceptual understanding on the pricing and usage of derivative securities.
Learning outcomes 
A Have an in-depth understanding of the derivative assets such as options, futures, and forwards.

B Demonstrate deep and critical understanding of the factors that affect derivative prices.

C Analyse, assess and implement pricing models to value derivative securities traded in the financial market.

D Understand the role of derivatives in risk management in financial markets.

Method of teaching and learning 
Weekly 3-hour workshop comprising a mixture of lectures and practice classes for a total of 21 contact hours over 7 weeks.
Syllabus 
Derivative Assets and Markets: Characteristics of forward, futures, options and swaps; market structures and conventions.

Pricing and Trading Strategies of Futures: Properties of forward and futures prices; forward and futures pricing model; futures trading strategies.

Pricing and Trading Strategies of Options: Introduction to the Black-Scholes Model, its assumptions, adjustments and applications; option trading strategies including spreads, straddles, etc..

Delivery Hours  
Lectures Seminars Tutorials Lab/Prcaticals Fieldwork / Placement Other(Private study) Total
Hours/Semester 21          54  75 

Assessment

Sequence Method % of Final Mark
1 Individual Assignment #1 15.00
2 Individual Assignment #2 15.00
3 Final Exam 70.00

Module Catalogue generated from SITS CUT-OFF: 6/3/2020 1:20:35 AM